EX-99.2 3 ck1424182-ex992_7.htm EX-99.2 ck1424182-ex992_7.htm

 

Exhibit 99.2

 

 

Q3 2020 QUARTERLY SUPPLEMENTAL INFORMATION Broadstone Net Lease, Inc. (NYSE: BNL) is a Real Estate Investment Trust (REIT) that acquires, owns, and manages single-tenant commercial real estate properties that are net lease on a long-term basis to a diversified group of tenants. www.broadstone.com

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Table of Contents

 

Section

Page

Company Overview

4

Quarterly Financial Summary

5

Balance Sheet

6

Income Statement Summary

7

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

8

EBITDA, EBITDAre, and Other Non-GAAP Operating Measures

9

Lease Revenues

10

Capital Structure

11

Debt Outstanding

12

Net Debt Metrics

12

Covenants

13

Debt Maturities and Interest Rate Exposure

14

Acquisitions

15

Dispositions

15

Portfolio at a Glance: Key Metrics

16

Diversification: Tenants and Brands

17-18

Diversification: Property Type

19-20

Key Statistics by Property Type

21

Diversification: Tenant Industry

22

Diversification: Geography

23

Lease Expirations

24

Portfolio Occupancy

25

Definitions and Explanations

26-27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

2

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

About the Data

 

This data and other information described herein are as of and for the three months ended September 30, 2020 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 Annual Report on Form 10-K for the year ended December 31, 2019, and Quarterly Reports on Form 10-Q for the periods ended September 30, 2020, June 30, 2020, March 31, 2020, and September 30, 2019.

 

Stock Split

 

All share and per share data as of June 30, 2020, March 31, 2020, December 31, 2019, and September 30, 2019, contained herein, have been adjusted to reflect the four-for-one stock split that was effected on September 18, 2020.

 

Forward Looking Statements

 

Information set forth herein contains forward-looking statements, which reflect our current views regarding our business, financial performance, growth prospects and strategies, market opportunities, and market trends. Forward-looking statements include all statements that are not historical facts. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. All of the forward-looking statements herein are subject to various risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results, performance, and achievements could differ materially from those expressed in or by the forward-looking statements and may be affected by a variety of risks and other factors. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from such forward-looking statements. These factors include, but are not limited to, risks and uncertainties related to the COVID-19 pandemic and its related impacts on us and our tenants, general economic conditions, local real estate conditions, tenant financial health, and property acquisitions and the timing of these acquisitions. These and other risks, assumptions, and uncertainties are described in our filings with the SEC, which are available on the SEC’s website at www.sec.gov.

 

You are cautioned not to place undue reliance on any forward-looking statements included herein. All forward-looking statements are made as of the date of this document and the risk that actual results, performance, and achievements will differ materially from the expectations expressed or referenced herein will increase with the passage of time. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

3

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Company Overview

 

Broadstone Net Lease, Inc. (NYSE:BNL) (the “Company,” “BNL,” “us,” “our” and “we”) is an internally-managed REIT, formed as a Maryland corporation in 2007 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. Since our inception, we have selectively invested in real estate across the industrial, healthcare, restaurant, office, and retail property types. We target properties with credit-worthy tenants in industries characterized by positive business drivers and trends, where the properties are an integral part of the tenants’ businesses and there are opportunities to secure long-term net leases. Through long-term net leases, our tenants are able to retain operational control of their strategically important locations, while allocating their debt and equity capital to fund their core business operations rather than real estate ownership.

 

 

Executive Management

Christopher J. Czarnecki

Chief Executive Officer, President, and Director

Ryan M. Albano

Executive Vice President and Chief Financial Officer

Sean T. Cutt

Executive Vice President and Chief Investment Officer

John D. Moragne

Executive Vice President, Chief Operating Officer, and Secretary

 

 

 

Board of Directors

Amy L. Tait

Chairman of the Board

Christopher J. Czarnecki

Chief Executive Officer and President

Laurie A. Hawkes

Lead Independent Director

 

David M. Jacobstein

Shekar Narasimhan

Geoffrey H. Rosenberger

James H. Watters

Agha S. Khan

 

 

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 | © 2020 Broadstone Net Lease, Inc. All rights reserved.

4

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Quarterly Financial Summary

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

 

 

 

Q3 2020

 

 

Q2 2020

 

 

Q1 2020

 

 

Q4 2019

 

 

Q3 2019

 

Financial Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in rental property, net

 

$

3,334,904

 

 

$

3,377,745

 

 

$

3,407,527

 

 

$

3,457,290

 

 

$

3,501,546

 

Total assets

 

 

4,204,469

 

 

 

4,144,055

 

 

 

4,274,054

 

 

 

3,917,858

 

 

 

3,991,788

 

Mortgage and notes payable, net

 

 

108,752

 

 

 

109,512

 

 

 

110,464

 

 

 

111,793

 

 

 

112,562

 

Unsecured term notes, net and revolver

 

 

1,433,495

 

 

 

1,921,392

 

 

 

2,025,887

 

 

 

1,869,381

 

 

 

1,974,811

 

Total liabilities

 

 

1,782,762

 

 

 

2,267,408

 

 

 

2,395,541

 

 

 

2,138,838

 

 

 

2,263,288

 

Total mezzanine equity

 

 

—

 

 

 

178,535

 

 

 

178,534

 

 

 

—

 

 

 

—

 

Total Broadstone Net Lease, Inc. stockholders'

   equity

 

 

2,191,794

 

 

 

1,591,633

 

 

 

1,593,437

 

 

 

1,667,614

 

 

 

1,623,362

 

Total equity (book value)

 

 

2,421,707

 

 

 

1,698,112

 

 

 

1,699,979

 

 

 

1,779,020

 

 

 

1,728,500

 

Revenues

 

 

80,744

 

 

 

80,371

 

 

 

78,231

 

 

 

84,931

 

 

 

76,401

 

Total operating expenses

 

 

57,496

 

 

 

50,345

 

 

 

47,045

 

 

 

45,124

 

 

 

43,705

 

Interest expense

 

 

18,511

 

 

 

19,513

 

 

 

20,991

 

 

 

21,509

 

 

 

18,465

 

Net income

 

 

9,711

 

 

 

17,098

 

 

 

11,848

 

 

 

27,712

 

 

 

25,038

 

Net earnings per common share,

   diluted

 

$

0.08

 

 

$

0.14

 

 

$

0.10

 

 

$

0.25

 

 

$

0.24

 

FFO

 

 

54,726

 

 

 

56,485

 

 

 

37,572

 

 

 

45,399

 

 

 

43,280

 

FFO per share, diluted

 

$

0.44

 

 

$

0.47

 

 

$

0.32

 

 

$

0.41

 

 

$

0.41

 

AFFO

 

 

47,077

 

 

 

46,056

 

 

 

41,068

 

 

 

41,572

 

 

 

38,819

 

AFFO per share, diluted

 

$

0.38

 

 

$

0.38

 

 

$

0.35

 

 

$

0.38

 

 

$

0.37

 

Net cash provided by operating activities

 

 

53,506

 

 

 

39,139

 

 

 

40,319

 

 

 

36,425

 

 

 

46,214

 

Net cash provided by (used in) investing

   activities

 

 

5,469

 

 

 

6,264

 

 

 

4,474

 

 

 

38,520

 

 

 

(749,333

)

Net cash (used in) provided by financing

   activities

 

 

40,170

 

 

 

(132,273

)

 

 

31,608

 

 

 

(98,749

)

 

 

734,516

 

Distributions declared

 

 

20,477

 

 

 

13,099

 

 

 

38,560

 

 

 

36,183

 

 

 

34,883

 

Distributions declared per diluted share

 

$

0.135

 

 

$

0.11

 

 

$

0.33

 

 

$

0.33

 

 

$

0.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Properties

 

 

628

 

 

 

633

 

 

 

636

 

 

 

646

 

 

 

662

 

Rentable square feet

 

27.3M

 

 

27.4M

 

 

27.4M

 

 

27.5M

 

 

27.5M

 

% Leased

 

 

99.8

%

 

 

99.6

%

 

 

99.6

%

 

 

99.8

%

 

 

99.8

%

Physical occupancy

 

 

99.6

%

 

 

99.5

%

 

 

99.5

%

 

 

99.7

%

 

 

99.7

%

Weighted average remaining lease term (years)

 

 

10.8

 

 

 

11.0

 

 

 

11.3

 

 

 

11.5

 

 

 

11.7

 

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

5

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Balance Sheet

(unaudited, in thousands)

 

 

 

September 30,

2020

 

 

June 30,

2020

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounted for using the operating

   method, net of accumulated

   depreciation

 

$

3,304,002

 

 

$

3,346,792

 

 

$

3,367,566

 

 

$

3,415,400

 

 

$

3,459,626

 

Accounted for using the direct financing

   method

 

 

30,902

 

 

 

30,953

 

 

 

39,961

 

 

 

41,890

 

 

 

41,920

 

Investment in rental property, net

 

 

3,334,904

 

 

 

3,377,745

 

 

 

3,407,527

 

 

 

3,457,290

 

 

 

3,501,546

 

Cash and cash equivalents

 

 

101,787

 

 

 

9,241

 

 

 

93,151

 

 

 

12,455

 

 

 

14,008

 

Accrued rental income

 

 

97,517

 

 

 

90,545

 

 

 

84,932

 

 

 

84,534

 

 

 

81,251

 

Tenant and other receivables, net

 

 

3,957

 

 

 

5,045

 

 

 

1,287

 

 

 

934

 

 

 

861

 

Prepaid expenses and other assets

 

 

19,522

 

 

 

9,819

 

 

 

12,397

 

 

 

12,613

 

 

 

34,594

 

Interest rate swap, assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,911

 

 

 

1,120

 

Goodwill

 

 

339,769

 

 

 

339,769

 

 

 

339,769

 

 

 

—

 

 

 

—

 

Intangible lease assets, net

 

 

288,971

 

 

 

298,741

 

 

 

320,418

 

 

 

331,894

 

 

 

342,478

 

Debt issuance costs – unsecured

   revolving credit facility, net

 

 

7,027

 

 

 

1,782

 

 

 

2,081

 

 

 

2,380

 

 

 

2,679

 

Leasing fees, net

 

 

11,015

 

 

 

11,368

 

 

 

12,492

 

 

 

12,847

 

 

 

13,251

 

Total assets

 

$

4,204,469

 

 

$

4,144,055

 

 

$

4,274,054

 

 

$

3,917,858

 

 

$

3,991,788

 

Liabilities and equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured revolving credit facility

 

$

—

 

 

$

248,300

 

 

$

353,300

 

 

$

197,300

 

 

$

303,300

 

Mortgages and notes payable, net

 

 

108,752

 

 

 

109,512

 

 

 

110,464

 

 

 

111,793

 

 

 

112,562

 

Unsecured term notes, net

 

 

1,433,495

 

 

 

1,673,092

 

 

 

1,672,587

 

 

 

1,672,081

 

 

 

1,671,511

 

Interest rate swap, liabilities

 

 

81,326

 

 

 

85,678

 

 

 

79,622

 

 

 

24,471

 

 

 

37,489

 

Earnout liability

 

 

13,177

 

 

 

37,975

 

 

 

44,296

 

 

 

—

 

 

 

—

 

Accounts payable and other liabilities

 

 

55,339

 

 

 

25,550

 

 

 

35,835

 

 

 

37,377

 

 

 

34,008

 

Due to related parties

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

433

 

Accrued interest payable

 

 

9,453

 

 

 

4,144

 

 

 

9,764

 

 

 

3,594

 

 

 

9,482

 

Intangible lease liabilities, net

 

 

81,220

 

 

 

83,157

 

 

 

89,673

 

 

 

92,222

 

 

 

94,503

 

Total liabilities

 

 

1,782,762

 

 

 

2,267,408

 

 

 

2,395,541

 

 

 

2,138,838

 

 

 

2,263,288

 

Mezzanine equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

—

 

 

 

66,376

 

 

 

66,376

 

 

 

—

 

 

 

—

 

Non-controlling interests

 

 

—

 

 

 

112,159

 

 

 

112,158

 

 

 

—

 

 

 

—

 

Total mezzanine equity

 

 

—

 

 

 

178,535

 

 

 

178,534

 

 

 

—

 

 

 

—

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadstone Net Lease, Inc. stockholders'

   equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Common stock, $0.00025 par value

 

 

27

 

 

 

26

 

 

 

26

 

 

 

26

 

 

 

25

 

Class A Common Stock, $0.00025 par

   value

 

 

8

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Additional paid-in capital

 

 

2,506,008

 

 

 

1,899,751

 

 

 

1,899,616

 

 

 

1,895,935

 

 

 

1,852,038

 

Cumulative distributions in excess of

   retained earnings

 

 

(239,520

)

 

 

(229,531

)

 

 

(233,067

)

 

 

(208,261

)

 

 

(194,790

)

Accumulated other comprehensive

   income

 

 

(74,729

)

 

 

(78,613

)

 

 

(73,138

)

 

 

(20,086

)

 

 

(33,911

)

Total Broadstone Net Lease, Inc.

   stockholders’ equity

 

 

2,191,794

 

 

 

1,591,633

 

 

 

1,593,437

 

 

 

1,667,614

 

 

 

1,623,362

 

Non-controlling interests

 

 

229,913

 

 

 

106,479

 

 

 

106,542

 

 

 

111,406

 

 

 

105,138

 

Total equity

 

 

2,421,707

 

 

 

1,698,112

 

 

 

1,699,979

 

 

 

1,779,020

 

 

 

1,728,500

 

Total liabilities, mezzanine

   and equity

 

$

4,204,469

 

 

$

4,144,055

 

 

$

4,274,054

 

 

$

3,917,858

 

 

$

3,991,788

 

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

6

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

 

Income Statement Summary

(unaudited, in thousands, except per share data)

 

 

 

Three Months Ended

 

 

 

September 30,

2020

 

 

June 30,

2020

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease revenues, net

 

$

80,744

 

 

$

80,371

 

 

$

78,231

 

 

$

84,931

 

 

$

76,401

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

31,363

 

 

 

39,921

 

 

 

31,219

 

 

 

30,829

 

 

 

28,392

 

Asset management fees

 

 

—

 

 

 

—

 

 

 

2,461

 

 

 

5,815

 

 

 

5,610

 

Property management fees

 

 

—

 

 

 

—

 

 

 

1,275

 

 

 

2,338

 

 

 

2,098

 

Property and operating expense

 

 

4,187

 

 

 

4,190

 

 

 

4,115

 

 

 

4,493

 

 

 

3,855

 

General and administrative

 

 

7,214

 

 

 

5,700

 

 

 

5,842

 

 

 

1,649

 

 

 

1,315

 

Provision for impairment of investment

   in rental properties

 

 

14,732

 

 

 

534

 

 

 

2,133

 

 

 

—

 

 

 

2,435

 

Total operating expenses

 

 

57,496

 

 

 

50,345

 

 

 

47,045

 

 

 

45,124

 

 

 

43,705

 

Other income (expenses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

—

 

 

 

11

 

 

 

9

 

 

 

3

 

 

 

5

 

Interest expense

 

 

(18,511

)

 

 

(19,513

)

 

 

(20,991

)

 

 

(21,509

)

 

 

(18,465

)

Cost of debt extinguishment

 

 

(392

)

 

 

—

 

 

 

(22

)

 

 

—

 

 

 

(455

)

Gain on sale of real estate

 

 

1,060

 

 

 

1,046

 

 

 

7,619

 

 

 

13,142

 

 

 

12,585

 

Income taxes

 

 

(129

)

 

 

(402

)

 

 

(549

)

 

 

(1,262

)

 

 

(405

)

Internalization expenses

 

 

(1,929

)

 

 

(389

)

 

 

(1,205

)

 

 

(2,463

)

 

 

(923

)

Change in fair value of earnout liability

 

 

6,362

 

 

 

6,321

 

 

 

(4,177

)

 

 

—

 

 

 

—

 

Other losses

 

 

2

 

 

 

(2

)

 

 

(22

)

 

 

(6

)

 

 

—

 

Net income

 

 

9,711

 

 

 

17,098

 

 

 

11,848

 

 

 

27,712

 

 

 

25,038

 

Net income attributable to

   non-controlling interests

 

 

(961

)

 

 

(1,745

)

 

 

(1,032

)

 

 

(1,778

)

 

 

(1,650

)

Net income attributable to

   Broadstone Net Lease, Inc.

 

$

8,750

 

 

$

15,353

 

 

$

10,816

 

 

$

25,934

 

 

$

23,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic1

 

 

111,155

 

 

 

107,422

 

 

 

106,108

 

 

 

102,941

 

 

 

98,568

 

Diluted1

 

 

123,381

 

 

 

119,648

 

 

 

116,210

 

 

 

109,889

 

 

 

105,516

 

Net earnings per common share2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.08

 

 

$

0.14

 

 

$

0.10

 

 

$

0.25

 

 

$

0.24

 

1 Excludes 216 weighted average shares of unvested restricted common stock for the three months ended September 30, 2020.

2 Excludes $46 from the numerator for the three months ended September 30, 2020, related to dividends paid or declared on shares of unvested restricted common stock.

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

7

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

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

(unaudited, in thousands, except per share data)

 

 

 

Three Months Ended

 

 

 

 

September 30,

2020

 

 

June 30,

2020

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

Net income

 

$

9,711

 

 

$

17,098

 

 

$

11,848

 

 

$

27,712

 

 

$

25,038

 

 

Real property depreciation and

   amortization

 

 

31,343

 

 

 

39,899

 

 

 

31,210

 

 

 

30,829

 

 

 

28,392

 

 

Gain on sale of real estate

 

 

(1,060

)

 

 

(1,046

)

 

 

(7,619

)

 

 

(13,142

)

 

 

(12,585

)

 

Provision for impairment of investment

   in rental properties

 

 

14,732

 

 

 

534

 

 

 

2,133

 

 

 

—

 

 

 

2,435

 

 

FFO

 

$

54,726

 

 

$

56,485

 

 

$

37,572

 

 

$

45,399

 

 

$

43,280

 

 

Capital improvements / reserves

 

 

1,662

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Straight-line rent adjustment

 

 

(6,943

)

 

 

(6,151

)

 

 

(1,612

)

 

 

(6,061

)

 

 

(5,499

)

 

Adjustment to provision of credit losses

 

 

(15

)

 

 

(110

)

 

 

(17

)

 

 

—

 

 

 

—

 

 

Cost of debt extinguishment

 

 

392

 

 

 

—

 

 

 

22

 

 

 

—

 

 

 

455

 

 

Amortization of debt issuance costs

 

 

819

 

 

 

821

 

 

 

888

 

 

 

924

 

 

 

611

 

 

Amortization of net mortgage premiums

 

 

(34

)

 

 

(37

)

 

 

(35

)

 

 

(35

)

 

 

(37

)

 

Gain on interest rate swaps and other

   non-cash interest expense

 

 

(42

)

 

 

(41

)

 

 

(42

)

 

 

(42

)

 

 

(41

)

 

Amortization of lease intangibles

 

 

151

 

 

 

1,019

 

 

 

(1,138

)

 

 

(1,082

)

 

 

(873

)

 

Internalization expenses

 

 

1,929

 

 

 

389

 

 

 

1,205

 

 

 

2,463

 

 

 

923

 

 

Stock-based compensation

 

 

796

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Severance

 

 

—

 

 

 

—

 

 

 

26

 

 

 

—

 

 

 

—

 

 

Change in fair value of earnout liability

 

 

(6,362

)

 

 

(6,321

)

 

 

4,177

 

 

 

—

 

 

 

—

 

 

Other losses

 

 

(2

)

 

 

2

 

 

 

22

 

 

 

6

 

 

 

—

 

 

AFFO

 

$

47,077

 

 

$

46,056

 

 

$

41,068

 

 

$

41,572

 

 

$

38,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average shares

   outstanding1

 

 

123,381

 

 

 

119,648

 

 

 

116,210

 

 

 

109,889

 

 

 

105,516

 

 

Net earnings per diluted share2

 

$

0.08

 

 

$

0.14

 

 

$

0.10

 

 

$

0.25

 

 

$

0.24

 

 

FFO per diluted share2

 

 

0.44

 

 

 

0.47

 

 

 

0.32

 

 

 

0.41

 

 

 

0.41

 

 

AFFO per diluted share2

 

 

0.38

 

 

 

0.38

 

 

 

0.35

 

 

 

0.38

 

 

 

0.37

 

 

1 Excludes 216 weighted average shares of unvested restricted common stock for the three months ended September 30, 2020.

2 Excludes $46 from the numerator for the three months ended September 30, 2020, related to dividends paid or declared on shares of unvested restricted common stock.


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

8

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

EBITDA, EBITDAre, and Other-Non GAAP Operating Measures

(unaudited, in thousands)

 

 

 

Three Months Ended

 

 

 

September 30,

2020

 

 

June 30,

2020

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

Net income

 

$

9,711

 

 

$

17,098

 

 

$

11,848

 

 

$

27,712

 

 

$

25,038

 

Depreciation and amortization

 

 

31,363

 

 

 

39,921

 

 

 

31,219

 

 

 

30,829

 

 

 

28,392

 

Interest expense

 

 

18,511

 

 

 

19,513

 

 

 

20,991

 

 

 

21,509

 

 

 

18,465

 

Income taxes

 

 

129

 

 

 

402

 

 

 

549

 

 

 

1,262

 

 

 

405

 

EBITDA

 

$

59,714

 

 

$

76,934

 

 

$

64,607

 

 

$

81,312

 

 

$

72,300

 

Provision for impairment of investment in

   rental properties

 

 

14,732

 

 

 

534

 

 

 

2,133

 

 

 

—

 

 

 

2,435

 

Gain on sale of real estate

 

 

(1,060

)

 

 

(1,046

)

 

 

(7,619

)

 

 

(13,142

)

 

 

(12,585

)

EBITDAre

 

$

73,386

 

 

$

76,422

 

 

$

59,121

 

 

$

68,170

 

 

$

62,150

 

Adjustment for current quarter investment

   activity 1

 

 

—

 

 

 

—

 

 

 

—

 

 

 

346

 

 

 

8,898

 

Adjustment for current quarter disposition

   activity 2

 

 

(78

)

 

 

(52

)

 

 

(285

)

 

 

(1,015

)

 

 

(549

)

Adjustment to exclude non-recurring

   expenses (income) 3

 

 

1,929

 

 

 

389

 

 

 

1,205

 

 

 

2,463

 

 

 

923

 

Adjustment to exclude change in fair value

   of earnout liability

 

 

(6,362

)

 

 

(6,321

)

 

 

4,177

 

 

 

—

 

 

 

—

 

Adjustment to exclude write-off of accrued

   rental income

 

 

—

 

 

 

—

 

 

 

3,993

 

 

 

—

 

 

 

—

 

Adjustment to exclude cost of debt

   extinguishments

 

 

392

 

 

 

—

 

 

 

22

 

 

 

—

 

 

 

455

 

Adjustment to exclude lease termination

   fees

 

 

—

 

 

 

(276

)

 

 

—

 

 

 

—

 

 

 

(407

)

Adjusted EBITDAre

 

$

69,267

 

 

$

70,162

 

 

$

68,233

 

 

$

69,964

 

 

$

71,470

 

Asset management fees

 

 

—

 

 

 

—

 

 

 

2,461

 

 

 

5,815

 

 

 

5,610

 

Property management fees

 

 

—

 

 

 

—

 

 

 

1,275

 

 

 

2,338

 

 

 

2,098

 

General and administrative

 

 

7,214

 

 

 

5,700

 

 

 

5,842

 

 

 

1,649

 

 

 

1,315

 

Adjusted Net Operating Income ("NOI")

 

$

76,481

 

 

$

75,862

 

 

$

77,811

 

 

$

79,766

 

 

$

80,493

 

Straight-line rental revenue, net

 

 

(6,947

)

 

 

(6,151

)

 

 

(5,594

)

 

 

(6,017

)

 

 

(6,306

)

Other amortization and non-cash charges

 

 

1,810

 

 

 

911

 

 

 

(1,133

)

 

 

(1,076

)

 

 

(873

)

Adjusted Cash NOI

 

$

71,344

 

 

$

70,622

 

 

$

71,084

 

 

$

72,673

 

 

$

73,314

 

Annualized EBITDAre

 

$

293,544

 

 

$

305,688

 

 

$

236,484

 

 

$

272,680

 

 

$

248,600

 

Annualized Adjusted EBITDAre

 

 

277,068

 

 

 

280,648

 

 

 

272,932

 

 

 

279,856

 

 

 

285,880

 

Annualized Adjusted NOI

 

 

305,924

 

 

 

303,448

 

 

 

311,244

 

 

 

319,064

 

 

 

321,972

 

Annualized Adjusted Cash NOI

 

 

285,376

 

 

 

282,488

 

 

 

284,336

 

 

 

290,692

 

 

 

293,256

 

1 Reflects an adjustment to give effect to all acquisition during the quarter as if they had been acquired as of the beginning of the quarter.

2 Reflects an adjustment to give effect to all dispositions during the quarter as if they had been sold as of the beginning of the quarter.

3 Amounts represent expenses directly associated with the Internalization.

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

9

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Lease Revenues Detail

(unaudited, in thousands)

 

 

 

Three Months Ended

 

 

 

September 30,

2020

 

 

June 30,

2020

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

Contractual rental amounts billed for

   operating leases

 

$

69,270

 

 

$

67,342

 

 

$

72,828

 

 

$

73,403

 

 

$

65,579

 

Adjustment to recognize contractual

   operating lease billings on a straight-

   line basis

 

 

6,768

 

 

 

8,276

 

 

 

1,665

 

 

 

6,094

 

 

 

5,575

 

Variable rental amounts earned

 

 

234

 

 

 

51

 

 

 

3

 

 

 

152

 

 

 

—

 

Earned income from direct financing

   leases

 

 

757

 

 

 

855

 

 

 

987

 

 

 

1,004

 

 

 

1,005

 

Operating expenses billed to tenants

 

 

3,389

 

 

 

4,335

 

 

 

3,732

 

 

 

4,042

 

 

 

3,811

 

Other income from real estate

   transactions

 

 

64

 

 

 

702

 

 

 

49

 

 

 

237

 

 

 

431

 

Adjustment to revenue recognized for

   uncollectible rental amounts billed

 

 

262

 

 

 

(1,190

)

 

 

(1,033

)

 

 

(1

)

 

 

—

 

Total Lease revenues, net

 

$

80,744

 

 

$

80,371

 

 

$

78,231

 

 

$

84,931

 

 

$

76,401

 

 

 

 

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

10

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Capital Structure

(unaudited, in thousands, except per share data)

EQUITY

 

 

 

 

Shares of Common Stock including Class A Common Stock

 

 

141,273

 

OP Units

 

 

12,226

 

Common Stock & OP Units

 

 

153,499

 

Price Per Share / Unit

 

$

16.78

 

IMPLIED EQUITY MARKET CAPITALIZATION

 

$

2,575,710

 

% of Total Capitalization

 

 

62.4

%

DEBT

 

 

 

 

Unsecured Revolving Credit Facility - 2023

 

$

—

 

Unsecured Term Loan Facilities

 

 

965,000

 

Unsecured Term Loan - 2022

 

 

60,000

 

Unsecured Term Loan - 2023

 

 

265,000

 

Unsecured Term Loan - 2024

 

 

190,000

 

Unsecured Term Loan - 2026

 

 

450,000

 

Senior Unsecured Notes

 

 

475,000

 

Senior Unsecured Notes - 2027

 

 

150,000

 

Senior Unsecured Notes - 2028

 

 

225,000

 

Senior Unsecured Notes - 2030

 

 

100,000

 

Mortgage Debt - Various

 

 

109,076

 

TOTAL DEBT

 

$

1,549,076

 

% of Total Capitalization

 

 

37.6

%

% of Total Capitalization Floating Rate Debt

 

 

2.7

%

% of Total Capitalization Fixed Rate Debt

 

 

34.9

%

 

 

 

 

 

ENTERPRISE VALUE

 

 

 

 

Total Capitalization

 

$

4,124,786

 

Less: Cash and Cash Equivalents

 

 

(101,787

)

Enterprise Value

 

$

4,022,999

 

 

The value of common stock and OP Units is calculated by multiplying the total number of shares and units by the closing price of BNL’s Common Stock of $16.78 as of September 30, 2020.

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

11

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Debt Outstanding

(unaudited, in thousands)

 

Year of Maturity

 

Term Loans

 

 

Revolver

 

 

Senior Notes

 

 

Mortgages and Notes Payable

 

 

Total

 

2020

 

$

—

 

 

$

—

 

 

$

—

 

 

$

818

 

 

$

818

 

2021

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18,006

 

 

 

18,006

 

2022

 

 

60,000

 

 

 

—

 

 

 

—

 

 

 

2,907

 

 

 

62,907

 

2023

 

 

265,000

 

 

 

—

 

 

 

—

 

 

 

8,173

 

 

 

273,173

 

2024

 

 

190,000

 

 

 

—

 

 

 

—

 

 

 

2,260

 

 

 

192,260

 

Thereafter

 

 

450,000

 

 

 

—

 

 

 

475,000

 

 

 

76,912

 

 

 

1,001,912

 

Total

 

$

965,000

 

 

$

—

 

 

$

475,000

 

 

$

109,076

 

 

$

1,549,076

 

 

 

 

 

Outstanding Balance

 

 

 

 

 

 

 

 

 

September 30,

 

 

December 31,

 

 

 

 

 

 

 

 

 

 

2020

 

 

 

2019

 

 

Interest Rate

 

 

Maturity Date

Revolving credit facilities

$

—

 

 

$

197,300

 

 

one-month LIBOR + 1.20%

 

 

0 1

2020 Unsecured Term Loan

 

 

—

 

 

 

300,000

 

 

one-month LIBOR + 1.25%

 

 

Feb. 2021 2

2022 Unsecured Term Loan

 

 

60,000

 

 

 

—

 

 

one-month LIBOR + 1.25%

 

 

Feb.2022

2023 Unsecured Term Loan

 

265,000

 

 

 

265,000

 

 

one-month LIBOR + 1.35%

 

 

Jan. 2023

2024 Unsecured Term Loan

 

190,000

 

 

 

190,000

 

 

one-month LIBOR + 1.25%

 

 

Jun. 2024

2026 Unsecured Term Loan

 

 

450,000

 

 

 

450,000

 

 

one-month LIBOR + 1.85%

 

 

Feb. 2026

Senior Notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series A

 

150,000

 

 

 

150,000

 

 

4.84%

 

 

Apr. 2027

Series B

 

225,000

 

 

 

225,000

 

 

5.09%

 

 

Jul. 2028

Series C

 

100,000

 

 

 

100,000

 

 

5.19%

 

 

Jul. 2030

 

 

 

475,000

 

 

 

475,000

 

 

 

 

 

 

 

Total

 

 

1,440,000

 

 

 

1,877,300

 

 

 

 

 

 

 

Debt issuance costs, net

 

 

(6,505

)

 

 

(7,919

)

 

 

 

 

 

 

 

 

$

1,433,495

 

 

$

1,869,381

 

 

 

 

 

 

 

 

1 On September 21, 2020, the Company replaced its prior $600 million revolving credit facility with a maturity date of January 2022, with a new $900 million facility with a maturity date of September 2023.

2 The Company had extended this loan prior to its repayment.

Net Debt Metrics

(unaudited, in thousands)

 

 

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Pro forma3)

 

 

(Historical)

 

 

June 30,

2020

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgages and notes payable, net

 

$

108,752

 

 

$

108,752

 

 

$

109,512

 

 

$

110,464

 

 

$

111,793

 

 

$

112,562

 

Unsecured term notes, net

 

 

1,433,495

 

 

 

1,433,495

 

 

 

1,673,092

 

 

 

1,672,587

 

 

 

1,672,081

 

 

 

1,671,511

 

Revolving Credit Facility

 

 

—

 

 

 

—

 

 

 

248,300

 

 

 

353,300

 

 

 

197,300

 

 

 

303,300

 

Debt issuance costs

 

 

6,829

 

 

 

6,829

 

 

 

7,268

 

 

 

7,767

 

 

 

8,277

 

 

 

8,862

 

Gross Debt

 

 

1,549,076

 

 

 

1,549,076

 

 

 

2,038,172

 

 

 

2,144,118

 

 

 

1,989,451

 

 

 

2,096,235

 

Cash and cash equivalents

 

 

(157,717

)

 

 

(101,787

)

 

 

(9,241

)

 

 

(93,151

)

 

 

(12,455

)

 

 

(14,008

)

Restricted cash

 

 

(7,200

)

 

 

(7,200

)

 

 

(601

)

 

 

(3,561

)

 

 

(7,856

)

 

 

(30,107

)

Net Debt

 

$

1,384,159

 

 

$

1,440,089

 

 

$

2,028,330

 

 

$

2,047,406

 

 

$

1,969,140

 

 

$

2,052,120

 

Net Debt to Annualized  EBITDAre

 

4.72x

 

 

4.91x

 

 

6.64x

 

 

8.66x

 

 

7.22x

 

 

8.25x

 

Net Debt to Annualized Adjusted

   EBITDAre

 

5.00x

 

 

5.20x

 

 

7.23x

 

 

7.50x

 

 

7.04x

 

 

7.18x

 

 

3 Reflects net proceeds from partial exercise of underwriters’ overallotment option subsequent to quarter end.

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

12

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Covenants

(unaudited)

 

The following is a summary of key financial covenants for the Company’s unsecured credit facility and unsecured term loans and senior notes. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of September 30, 2020, the Company believes it is in compliance with the covenants.

 

Covenants

 

Required

 

Revolving Credit Facility and Unsecured Term Loans

 

 

Senior Notes

 

Leverage ratio

 

≤ 0.60 to 1.00

 

 

0.37

 

 

 

0.37

 

Secured indebtedness ratio

 

≤ 0.40 to 1.00

 

 

0.03

 

 

 

0.03

 

Unencumbered coverage ratio

 

≥ 1.75 to 1.00

 

 

5.42

 

 

Not Applicable

 

Fixed charge coverage ratio

 

≥ 1.50 to 1.00

 

 

3.25

 

 

 

3.25

 

Total unsecured indebtedness to total

   unencumbered eligible property value

 

≤ 0.60 to 1.00

 

 

0.38

 

 

 

0.40

 

Dividends and other restricted payments

 

Only applicable in case of default

 

Not Applicable

 

 

Not Applicable

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

13

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Debt Maturities and Interest Rate Exposure

(unaudited, dollars in millions)

Debt Maturities

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

 

Interest Rate Exposure

The Company uses interest rate swaps, fixed-rate private placement notes, and fixed-rate mortgages to mitigate the impact of interest rate variability.

 

Interest rate exposure not inclusive of floating rate debt, as borrowings are short-term in nature.

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

14

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Portfolio Activity

 

Acquisitions

 

The Company has not acquired any new properties through the first nine months of 2020.

 

Dispositions

(unaudited, square feet and dollars in thousands)

 

The following table summarizes the Company’s property disposition activity during 2020.

 

Q1 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Type

 

Number of Properties

 

 

Square Feet ('000s)

 

 

Acquisition Price ($'000s)

 

 

Disposition Price ($'000s)

 

 

Net Book Value ($'000s)

 

 

Cash Cap Rate

 

 

Restaurant

 

 

4

 

 

 

15

 

 

$

7,772

 

 

$

10,700

 

 

$

7,633

 

 

 

5.8

%

 

Other

 

 

3

 

 

 

49

 

 

 

17,042

 

 

 

18,583

 

 

 

15,574

 

 

 

6.8

%

 

Healthcare

 

 

2

 

 

 

9

 

 

 

2,519

 

 

 

3,652

 

 

 

1,964

 

 

 

7.6

%

 

Retail

 

 

1

 

 

 

3

 

 

 

2,804

 

 

 

4,250

 

 

 

2,593

 

 

 

7.0

%

 

Total Properties

 

 

10

 

 

 

76

 

 

$

30,137

 

 

$

37,185

 

 

$

27,764

 

 

 

6.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Type

 

Number of Properties

 

 

Square Feet ('000s)

 

 

Acquisition Price ($'000s)

 

 

Disposition Price ($'000s)

 

 

Net Book Value ($'000s)

 

 

Cash Cap Rate

 

 

Restaurant

 

 

2

 

 

 

12

 

 

$

7,860

 

 

$

8,500

 

 

$

7,637

 

 

 

6.6

%

 

Healthcare

 

 

1

 

 

 

5

 

 

 

1,542

 

 

 

2,038

 

 

 

1,357

 

 

 

7.7

%

 

Total Properties

 

 

3

 

 

 

17

 

 

$

9,402

 

 

$

10,538

 

 

$

8,994

 

 

 

6.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Type

 

Number of Properties

 

 

Square Feet ('000s)

 

 

Acquisition Price ($'000s)

 

 

Disposition Price ($'000s)

 

 

Net Book Value ($'000s)

 

 

Cash Cap Rate

 

 

Restaurant

 

 

3

 

 

 

9

 

 

$

5,221

 

 

$

3,975

 

 

$

2,720

 

 

 

8.7

%

1

Healthcare

 

 

1

 

 

 

24

 

 

 

6,986

 

 

 

3,250

 

 

 

3,071

 

 

N/A

2

 

Industrial

 

 

1

 

 

 

51

 

 

 

3,339

 

 

 

2,591

 

 

 

2,536

 

 

N/A

2

 

Total Properties

 

 

5

 

 

 

83

 

 

$

15,546

 

 

$

9,816

 

 

$

8,327

 

 

 

8.7

%

1

1 Weighted average cash cap rate on tenanted properties sold.

2 Properties were vacant at the time of disposition.

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

15

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Portfolio at a Glance: Key Metrics

 

Properties

628

 

States

41

 

Canada

1

 

Total Building Sq. Footage

27.3M

 

Enterprise Value

$4.0B

 

Tenants

182

 

Brands

169

 

Industries

54

 

% Leased (based on SF)

99.8%

 

Physical Occupancy (based on SF)

99.6%

 

Top Ten Tenant Concentration

18.7%

 

Top Twenty Tenant Concentration

31.8%

 

Investment Grade (tenant/guarantor) 1

17.8%

 

Financial Reporting Coverage2

94.8%

 

Rent Coverage Ratio3

3.0x

 

Weighted Average Annual Rent Increases

2.1%

 

Weighted Average Remaining Lease Term

10.8 years

 

 

1 Reflects investment grade credit rating assigned to Tractor Supply Co. (NYSE: TSCO) in October 2020.

2 Includes 6.4% related to tenants not required to provide financial information under the terms of our lease, but whose financial statements are available publicly.

3 Represents rent coverage ratio for Restaurants property type.

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

16

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Diversification: Tenants & Brands

(unaudited)

 

Top 20 Tenants

Tenant

 

Property Type

 

# Properties

 

 

ABR

($'000s)

 

 

ABR as a % of Total Portfolio

 

 

Square Feet ('000s)

 

 

SF as a % of Total Portfolio

 

Red Lobster Hospitality & Red Lobster

   Restaurants LLC

 

Casual Dining

 

 

24

 

 

$

7,306

 

 

 

2.5

%

 

 

196

 

 

 

0.7

%

Jack's Family Restaurants LP

 

Quick Service Restaurants

 

 

36

 

 

 

6,067

 

 

 

2.1

%

 

 

121

 

 

 

0.5

%

Axcelis Technologies, Inc.

 

Flex and R&D

 

 

1

 

 

 

5,730

 

 

 

2.0

%

 

 

417

 

 

 

1.5

%

Hensley & Company

 

Distribution & Warehouse

 

 

3

 

 

 

5,643

 

 

 

2.0

%

 

 

577

 

 

 

2.1

%

Outback Steakhouse of Florida LLC

 

Casual Dining

 

 

23

 

 

 

5,313

 

 

 

1.8

%

 

 

146

 

 

 

0.5

%

Krispy Kreme Doughnut Corporation

 

Quick Service Restaurants/

Food Processing

 

 

27

 

 

 

5,034

 

 

 

1.8

%

 

 

156

 

 

 

0.6

%

BluePearl Holdings, LLC

 

Animal Health Services

 

 

12

 

 

 

5,009

 

 

 

1.7

%

 

 

154

 

 

 

0.6

%

Big Tex Trailer Manufacturing, Inc.

 

Automotive/Distribution &

Warehouse/Manufacturing/ Corporate Headquarters

 

 

17

 

 

 

4,764

 

 

 

1.7

%

 

 

1,302

 

 

 

4.8

%

Siemens Medical Solutions USA, Inc. &

   Siemens Corporation

 

Manufacturing/Flex

and R&D

 

 

2

 

 

 

4,646

 

 

 

1.6

%

 

 

545

 

 

 

2.0

%

Nestle' Dreyer's Ice Cream Company

 

Cold Storage

 

 

1

 

 

 

4,344

 

 

 

1.5

%

 

 

310

 

 

 

1.1

%

Total Top 10 Tenants

 

 

 

 

146

 

 

 

53,856

 

 

 

18.7

%

 

 

3,924

 

 

 

14.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nationwide Mutual Insurance Company

 

Strategic Operations

 

 

2

 

 

 

4,165

 

 

 

1.5

%

 

 

407

 

 

 

1.5

%

Arkansas Surgical Hospital

 

Surgical

 

 

1

 

 

 

4,156

 

 

 

1.5

%

 

 

129

 

 

 

0.5

%

American Signature, Inc.

 

Home Furnishings

 

 

6

 

 

 

4,141

 

 

 

1.4

%

 

 

474

 

 

 

1.7

%

Cascade Aerospace Inc.

 

Manufacturing

 

 

1

 

 

 

3,884

 

 

 

1.3

%

 

 

231

 

 

 

0.9

%

Fresh Express Incorporated

 

Food Processing

 

 

1

 

 

 

3,819

 

 

 

1.3

%

 

 

335

 

 

 

1.2

%

Aventiv Technologies, LLC

 

Corporate Headquarters

 

 

1

 

 

 

3,742

 

 

 

1.3

%

 

 

154

 

 

 

0.6

%

Bob Evans Restaurants, LLC

 

Casual Dining

 

 

23

 

 

 

3,728

 

 

 

1.3

%

 

 

121

 

 

 

0.4

%

Tractor Supply Company

 

General Merchandise

 

 

14

 

 

 

3,604

 

 

 

1.2

%

 

 

281

 

 

 

1.0

%

Centene Management Company, LLC

 

Strategic Operations

 

 

1

 

 

 

3,267

 

 

 

1.2

%

 

 

220

 

 

 

0.8

%

Zips Car Wash, LLC

 

Automotive

 

 

14

 

 

 

3,255

 

 

 

1.1

%

 

 

57

 

 

 

0.2

%

Total Top 20 Tenants

 

 

 

 

210

 

 

$

91,617

 

 

 

31.8

%

 

 

6,333

 

 

 

23.2

%

 

 

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

17

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Top 20 Brands

(unaudited)

 

Brand

 

Property Type

 

# Properties

 

 

ABR

($'000s)

 

 

ABR as a % of Total Portfolio

 

 

Square Feet ('000s)

 

 

SF as a % of Total Portfolio

 

Red Lobster

 

Casual Dining

 

 

24

 

 

$

7,306

 

 

 

2.5

%

 

 

196

 

 

 

0.7

%

Jack's Family Restaurants

 

Quick Service Restaurants

 

 

36

 

 

 

6,067

 

 

 

2.1

%

 

 

121

 

 

 

0.5

%

Axcelis

 

Flex and R&D

 

 

1

 

 

 

5,730

 

 

 

2.0

%

 

 

417

 

 

 

1.5

%

Hensley

 

Distribution & Warehouse

 

 

3

 

 

 

5,643

 

 

 

2.0

%

 

 

577

 

 

 

2.1

%

Bob Evans Farms

 

Casual Dining/Food

Processing

 

 

24

 

 

 

5,574

 

 

 

1.9

%

 

 

297

 

 

 

1.0

%

Wendy's

 

Quick Service Restaurants

 

 

39

 

 

 

5,568

 

 

 

1.9

%

 

 

115

 

 

 

0.4

%

Krispy Kreme

 

Quick Service Restaurants/

Food Processing

 

 

27

 

 

 

5,034

 

 

 

1.8

%

 

 

156

 

 

 

0.6

%

BluePearl Veterinary Partners

 

Animal Health Services

 

 

12

 

 

 

5,009

 

 

 

1.7

%

 

 

154

 

 

 

0.6

%

Big Tex Trailers

 

Automotive/Distribution &

Warehouse/Manufacturing/

Corporate Headquarters

 

 

17

 

 

 

4,764

 

 

 

1.7

%

 

 

1,302

 

 

 

4.8

%

Siemens

 

Manufacturing/Flex

and R&D

 

 

2

 

 

 

4,646

 

 

 

1.6

%

 

 

545

 

 

 

2.0

%

Total Top 10 Brands

 

 

 

 

185

 

 

 

55,341

 

 

 

19.2

%

 

 

3,880

 

 

 

14.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outback Steakhouse

 

Casual Dining

 

 

21

 

 

 

4,624

 

 

 

1.6

%

 

 

133

 

 

 

0.5

%

Nestle'

 

Cold Storage

 

 

1

 

 

 

4,344

 

 

 

1.5

%

 

 

310

 

 

 

1.1

%

Taco Bell

 

Quick Service Restaurants

 

 

32

 

 

 

4,169

 

 

 

1.5

%

 

 

82

 

 

 

0.3

%

Nationwide Mutual Insurance Co.

 

Strategic Operations

 

 

2

 

 

 

4,165

 

 

 

1.5

%

 

 

407

 

 

 

1.5

%

Arkansas Surgical Hospital

 

Surgical

 

 

1

 

 

 

4,156

 

 

 

1.5

%

 

 

129

 

 

 

0.5

%

Value City Furniture

 

Home Furnishings

 

 

6

 

 

 

4,141

 

 

 

1.4

%

 

 

474

 

 

 

1.7

%

Cascade Aerospace

 

Manufacturing

 

 

1

 

 

 

3,884

 

 

 

1.3

%

 

 

231

 

 

 

0.9

%

Chiquita

 

Food Processing

 

 

1

 

 

 

3,819

 

 

 

1.3

%

 

 

335

 

 

 

1.2

%

Securus Technologies1

 

Corporate Headquarters

 

 

1

 

 

 

3,742

 

 

 

1.3

%

 

 

154

 

 

 

0.6

%

Tractor Supply Co.

 

General Merchandise

 

 

14

 

 

 

3,604

 

 

 

1.2

%

 

 

281

 

 

 

1.0

%

Total Top 20 Brands

 

 

 

 

265

 

 

$

95,989

 

 

 

33.3

%

 

 

6,416

 

 

 

23.5

%

 

1 Lease associated with this property requires BNL to pay for certain costs that are not reimbursed by the tenant. Estimated next twelve months net operating income associated with the property is $2,597.

 

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

18

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Diversification: Property Type

(unaudited, rent percentages based on ABR)           

 

 

 

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

19

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Diversification: Property Type (continued)

(unaudited)

 

Property Type

 

# Properties

 

 

ABR

($'000s)

 

 

ABR as a % of Total Portfolio

 

 

Square Feet ('000s)

 

 

SF as a % of Total Portfolio

 

Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Manufacturing

 

 

55

 

 

$

40,876

 

 

 

14.2

%

 

 

7,635

 

 

 

28.0

%

Distribution & Warehouse

 

 

32

 

 

 

39,759

 

 

 

13.8

%

 

 

7,013

 

 

 

25.7

%

Food Processing

 

 

14

 

 

 

18,275

 

 

 

6.3

%

 

 

2,131

 

 

 

7.8

%

Flex and R&D

 

 

7

 

 

 

16,600

 

 

 

5.8

%

 

 

1,457

 

 

 

5.3

%

Cold Storage

 

 

4

 

 

 

12,497

 

 

 

4.3

%

 

 

933

 

 

 

3.4

%

Industrial Total

 

 

112

 

 

 

128,007

 

 

 

44.4

%

 

 

19,169

 

 

 

70.2

%

Healthcare

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clinical

 

 

50

 

 

 

25,540

 

 

 

8.9

%

 

 

1,081

 

 

 

3.9

%

Surgical

 

 

15

 

 

 

9,701

 

 

 

3.4

%

 

 

345

 

 

 

1.3

%

Animal Health Services

 

 

20

 

 

 

8,072

 

 

 

2.8

%

 

 

314

 

 

 

1.1

%

Life Science

 

 

9

 

 

 

7,478

 

 

 

2.6

%

 

 

549

 

 

 

2.0

%

Healthcare Services

 

 

26

 

 

 

6,771

 

 

 

2.4

%

 

 

262

 

 

 

1.0

%

Healthcare Total

 

 

120

 

 

 

57,562

 

 

 

20.1

%

 

 

2,551

 

 

 

9.3

%

Restaurant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quick Service Restaurants

 

 

150

 

 

 

24,589

 

 

 

8.5

%

 

 

506

 

 

 

1.9

%

Casual Dining

 

 

90

 

 

 

20,117

 

 

 

7.0

%

 

 

575

 

 

 

2.1

%

Restaurant Total

 

 

240

 

 

 

44,706

 

 

 

15.5

%

 

 

1,081

 

 

 

4.0

%

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Strategic Operations

 

 

7

 

 

 

13,554

 

 

 

4.7

%

 

 

1,021

 

 

 

3.7

%

Corporate Headquarters

 

 

6

 

 

 

9,636

 

 

 

3.3

%

 

 

671

 

 

 

2.5

%

Call Center

 

 

4

 

 

 

5,683

 

 

 

2.0

%

 

 

392

 

 

 

1.4

%

Office Total

 

 

17

 

 

 

28,873

 

 

 

10.0

%

 

 

2,084

 

 

 

7.6

%

Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automotive

 

 

56

 

 

 

9,722

 

 

 

3.4

%

 

 

784

 

 

 

2.9

%

General Merchandise

 

 

57

 

 

 

8,451

 

 

 

2.9

%

 

 

677

 

 

 

2.5

%

Home Furnishings

 

 

15

 

 

 

5,713

 

 

 

2.0

%

 

 

860

 

 

 

3.1

%

Retail Total

 

 

128

 

 

 

23,886

 

 

 

8.3

%

 

 

2,321

 

 

 

8.5

%

Other

 

 

11

 

 

 

4,963

 

 

 

1.7

%

 

 

117

 

 

 

0.4

%

Total

 

 

628

 

 

$

287,997

 

 

 

100.0

%

 

 

27,323

 

 

 

100.0

%

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

20

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Key Statistics by Property Type

 

Industrial

 

 

 

 

Number of properties

 

 

112

 

Square feet (000s)

 

 

19,169

 

Weighted average lease term (years)

 

 

10.7

 

Weighted average annual rent escalation

 

 

2.0

%

 

 

 

 

 

Healthcare

 

 

 

 

Number of properties

 

 

120

 

Square feet (000s)

 

 

2,551

 

Weighted average lease term (years)

 

 

8.4

 

Weighted average annual rent escalation

 

 

2.3

%

 

 

 

 

 

Restaurants

 

 

 

 

Number of properties

 

 

240

 

Square feet (000s)

 

 

1,081

 

Weighted average lease term (years)

 

 

16.1

 

Weighted average annual rent escalation

 

 

1.9

%

 

 

 

 

 

Office

 

 

 

 

Number of properties

 

 

17

 

Square feet (000s)

 

 

2,084

 

Weighted average lease term (years)

 

 

7.7

 

Weighted average annual rent escalation

 

 

2.4

%

 

 

 

 

 

Retail

 

 

 

 

Number of properties

 

 

128

 

Square feet (000s)

 

 

2,321

 

Weighted average lease term (years)

 

 

11.0

 

Weighted average annual rent escalation

 

 

1.9

%

 

 

 

 

 

Other

 

 

 

 

Number of properties

 

 

11

 

Square feet (000s)

 

 

117

 

Weighted average lease term (years)

 

 

11.6

 

Weighted average annual rent escalation

 

 

1.6

%


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

21

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Diversification: Tenant Industry
(unaudited)

Industry

 

# Properties

 

 

ABR

($'000s)

 

 

ABR as a % of Total Portfolio

 

 

Square Feet ('000s)

 

 

SF as a % of Total Portfolio

 

Healthcare Facilities

 

 

95

 

 

$

45,500

 

 

 

15.8

%

 

 

1,796

 

 

 

6.6

%

Restaurants

 

 

240

 

 

 

45,370

 

 

 

15.8

%

 

 

1,105

 

 

 

4.1

%

Food Distributors

 

 

7

 

 

 

12,775

 

 

 

4.4

%

 

 

1,556

 

 

 

5.7

%

Packaged Foods & Meats

 

 

6

 

 

 

11,237

 

 

 

3.9

%

 

 

1,131

 

 

 

4.1

%

Auto Parts & Equipment

 

 

31

 

 

 

10,153

 

 

 

3.5

%

 

 

2,190

 

 

 

8.0

%

Metal & Glass Containers

 

 

8

 

 

 

9,602

 

 

 

3.3

%

 

 

2,196

 

 

 

8.0

%

Specialized Consumer Services

 

 

37

 

 

 

9,452

 

 

 

3.3

%

 

 

691

 

 

 

2.5

%

Healthcare Services

 

 

16

 

 

 

8,197

 

 

 

2.8

%

 

 

481

 

 

 

1.8

%

Home Furnishing Retail

 

 

17

 

 

 

8,007

 

 

 

2.8

%

 

 

1,291

 

 

 

4.7

%

Aerospace & Defense

 

 

6

 

 

 

7,461

 

 

 

2.6

%

 

 

921

 

 

 

3.4

%

Distributors

 

 

12

 

 

 

6,818

 

 

 

2.4

%

 

 

966

 

 

 

3.5

%

Electronic Components

 

 

2

 

 

 

6,514

 

 

 

2.3

%

 

 

466

 

 

 

1.7

%

Air Freight & Logistics

 

 

3

 

 

 

6,442

 

 

 

2.2

%

 

 

436

 

 

 

1.6

%

Specialty Stores

 

 

15

 

 

 

6,219

 

 

 

2.2

%

 

 

809

 

 

 

3.0

%

Industrial Machinery

 

 

15

 

 

 

5,479

 

 

 

1.9

%

 

 

1,096

 

 

 

4.0

%

Other (39 industries)

 

 

112

 

 

 

88,771

 

 

 

30.8

%

 

 

10,125

 

 

 

37.1

%

Untenanted properties

 

 

6

 

 

 

—

 

 

 

—

 

 

 

67

 

 

 

0.2

%

Total

 

 

628

 

 

$

287,997

 

 

 

100.0

%

 

 

27,323

 

 

 

100.0

%

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

22

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Diversification: Geography

(unaudited)

 

 

State

 

# Properties

 

 

ABR

($'000s)

 

 

ABR as a % of Total Portfolio

 

 

Square Feet ('000s)

 

 

SF as a % of Total Portfolio

 

 

 

State

 

# Properties

 

 

 

 

ABR

($'000s)

 

 

 

 

ABR as a % of Total Portfolio

 

 

 

 

Square Feet ('000s)

 

 

 

 

SF as a % of Total Portfolio

 

TX

 

 

53

 

 

$

30,167

 

 

 

10.5

%

 

 

3,141

 

 

 

11.5

%

 

 

VA

 

 

13

 

 

 

 

$

4,351

 

 

 

 

 

1.5

%

 

 

 

 

110

 

 

 

 

 

0.4

%

IL

 

 

26

 

 

 

18,207

 

 

 

6.3

%

 

 

1,981

 

 

 

7.2

%

 

 

WA

 

 

15

 

 

 

 

 

4,115

 

 

 

 

 

1.4

%

 

 

 

 

150

 

 

 

 

 

0.6

%

CA

 

 

11

 

 

 

15,564

 

 

 

5.4

%

 

 

1,554

 

 

 

5.7

%

 

 

MO

 

 

9

 

 

 

 

 

3,882

 

 

 

 

 

1.3

%

 

 

 

 

733

 

 

 

 

 

2.7

%

WI

 

 

32

 

 

 

15,447

 

 

 

5.4

%

 

 

1,611

 

 

 

5.9

%

 

 

KY

 

 

17

 

 

 

 

 

3,446

 

 

 

 

 

1.2

%

 

 

 

 

176

 

 

 

 

 

0.6

%

FL

 

 

46

 

 

 

15,190

 

 

 

5.3

%

 

 

792

 

 

 

2.9

%

 

 

LA

 

 

3

 

 

 

 

 

3,122

 

 

 

 

 

1.1

%

 

 

 

 

175

 

 

 

 

 

0.6

%

MI

 

 

35

 

 

 

14,413

 

 

 

5.0

%

 

 

1,439

 

 

 

5.3

%

 

 

NE

 

 

6

 

 

 

 

 

2,958

 

 

 

 

 

1.0

%

 

 

 

 

509

 

 

 

 

 

1.9

%

OH

 

 

35

 

 

 

14,024

 

 

 

4.9

%

 

 

1,369

 

 

 

5.0

%

 

 

MD

 

 

4

 

 

 

 

 

2,856

 

 

 

 

 

1.0

%

 

 

 

 

293

 

 

 

 

 

1.1

%

IN

 

 

29

 

 

 

12,385

 

 

 

4.3

%

 

 

1,738

 

 

 

6.4

%

 

 

NM

 

 

8

 

 

 

 

 

2,730

 

 

 

 

 

0.9

%

 

 

 

 

96

 

 

 

 

 

0.4

%

NC

 

 

28

 

 

 

10,607

 

 

 

3.7

%

 

 

1,139

 

 

 

4.2

%

 

 

IA

 

 

4

 

 

 

 

 

2,644

 

 

 

 

 

0.9

%

 

 

 

 

622

 

 

 

 

 

2.3

%

MA

 

 

4

 

 

 

9,551

 

 

 

3.3

%

 

 

1,009

 

 

 

3.7

%

 

 

SC

 

 

11

 

 

 

 

 

2,435

 

 

 

 

 

0.8

%

 

 

 

 

289

 

 

 

 

 

1.1

%

PA

 

 

16

 

 

 

9,372

 

 

 

3.3

%

 

 

1,071

 

 

 

3.9

%

 

 

UT

 

 

3

 

 

 

 

 

2,289

 

 

 

 

 

0.8

%

 

 

 

 

280

 

 

 

 

 

1.0

%

MN

 

 

20

 

 

 

9,075

 

 

 

3.2

%

 

 

1,225

 

 

 

4.5

%

 

 

MS

 

 

3

 

 

 

 

 

1,866

 

 

 

 

 

0.6

%

 

 

 

 

258

 

 

 

 

 

0.9

%

NY

 

 

15

 

 

 

9,048

 

 

 

3.1

%

 

 

572

 

 

 

2.1

%

 

 

CT

 

 

2

 

 

 

 

 

1,648

 

 

 

 

 

0.6

%

 

 

 

 

55

 

 

 

 

 

0.2

%

TN

 

 

37

 

 

 

9,029

 

 

 

3.1

%

 

 

372

 

 

 

1.4

%

 

 

WV

 

 

8

 

 

 

 

 

1,630

 

 

 

 

 

0.6

%

 

 

 

 

36

 

 

 

 

 

0.1

%

AZ

 

 

8

 

 

 

8,434

 

 

 

2.9

%

 

 

761

 

 

 

2.8

%

 

 

MT

 

 

7

 

 

 

 

 

1,526

 

 

 

 

 

0.5

%

 

 

 

 

43

 

 

 

 

 

0.2

%

AL

 

 

45

 

 

 

7,725

 

 

 

2.7

%

 

 

177

 

 

 

0.6

%

 

 

CO

 

 

3

 

 

 

 

 

1,434

 

 

 

 

 

0.5

%

 

 

 

 

94

 

 

 

 

 

0.3

%

AR

 

 

10

 

 

 

7,117

 

 

 

2.5

%

 

 

278

 

 

 

1.0

%

 

 

NV

 

 

2

 

 

 

 

 

1,307

 

 

 

 

 

0.5

%

 

 

 

 

81

 

 

 

 

 

0.3

%

OK

 

 

21

 

 

 

6,923

 

 

 

2.4

%

 

 

806

 

 

 

2.9

%

 

 

ND

 

 

2

 

 

 

 

 

923

 

 

 

 

 

0.3

%

 

 

 

 

28

 

 

 

 

 

0.1

%

GA

 

 

19

 

 

 

5,984

 

 

 

2.1

%

 

 

968

 

 

 

3.5

%

 

 

DE

 

 

3

 

 

 

 

 

663

 

 

 

 

 

0.2

%

 

 

 

 

35

 

 

 

 

 

0.1

%

KS

 

 

10

 

 

 

4,893

 

 

 

1.7

%

 

 

639

 

 

 

2.3

%

 

 

WY

 

 

1

 

 

 

 

 

307

 

 

 

 

 

0.1

%

 

 

 

 

21

 

 

 

 

 

0.1

%

NJ

 

 

3

 

 

 

4,826

 

 

 

1.7

%

 

 

366

 

 

 

1.3

%

 

 

Total US

 

 

627

 

 

 

 

$

284,113

 

 

 

 

 

98.6

%

 

 

 

 

27,092

 

 

 

 

 

99.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Canada

 

 

1

 

 

 

 

 

3,884

 

 

 

 

 

1.4

%

 

 

 

 

231

 

 

 

 

 

0.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grand Total

 

 

628

 

 

 

 

$

287,997

 

 

 

 

 

100.0

%

 

 

 

 

27,323

 

 

 

 

 

100.0

%


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

23

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Lease Expirations

(unaudited, rent percentages based on ABR)

 

WEIGHTED AVERAGE
REMAINING LEASE TERM: 10.8 YRS

 

 

Expiration Year

 

# Properties

 

 

ABR

($'000s)

 

 

ABR as a % of Total Portfolio

 

 

Square Feet ('000s)

 

 

SF as a % of Total Portfolio

 

2020

 

 

2

 

 

$

42

 

 

 

—

 

 

 

157

 

 

 

0.6

%

2021

 

 

6

 

 

 

1,546

 

 

 

0.5

%

 

 

89

 

 

 

0.3

%

2022

 

 

4

 

 

 

3,347

 

 

 

1.2

%

 

 

124

 

 

 

0.4

%

2023

 

 

8

 

 

 

5,154

 

 

 

1.8

%

 

 

538

 

 

 

2.0

%

2024

 

 

12

 

 

 

13,629

 

 

 

4.7

%

 

 

1,694

 

 

 

6.2

%

2025

 

 

19

 

 

 

7,697

 

 

 

2.7

%

 

 

682

 

 

 

2.5

%

2026

 

 

33

 

 

 

17,985

 

 

 

6.2

%

 

 

1,394

 

 

 

5.1

%

2027

 

 

30

 

 

 

23,098

 

 

 

8.0

%

 

 

2,029

 

 

 

7.4

%

2028

 

 

33

 

 

 

26,392

 

 

 

9.2

%

 

 

2,708

 

 

 

9.9

%

2029

 

 

60

 

 

 

19,020

 

 

 

6.6

%

 

 

2,529

 

 

 

9.3

%

2030

 

 

89

 

 

 

49,394

 

 

 

17.2

%

 

 

5,046

 

 

 

18.5

%

2031

 

 

16

 

 

 

5,078

 

 

 

1.8

%

 

 

503

 

 

 

1.8

%

2032

 

 

36

 

 

 

21,723

 

 

 

7.5

%

 

 

2,295

 

 

 

8.4

%

2033

 

 

37

 

 

 

15,123

 

 

 

5.3

%

 

 

1,635

 

 

 

6.0

%

2034

 

 

30

 

 

 

5,358

 

 

 

1.9

%

 

 

344

 

 

 

1.3

%

2035

 

 

54

 

 

 

17,731

 

 

 

6.2

%

 

 

1,959

 

 

 

7.2

%

2036

 

 

28

 

 

 

9,588

 

 

 

3.3

%

 

 

811

 

 

 

3.0

%

2037

 

 

19

 

 

 

14,794

 

 

 

5.1

%

 

 

913

 

 

 

3.3

%

2038

 

 

32

 

 

 

6,653

 

 

 

2.3

%

 

 

303

 

 

 

1.1

%

2039

 

 

12

 

 

 

8,974

 

 

 

3.1

%

 

 

933

 

 

 

3.4

%

Thereafter

 

 

62

 

 

 

15,671

 

 

 

5.4

%

 

 

570

 

 

 

2.1

%

Untenanted properties

 

 

6

 

 

 

—

 

 

 

—

 

 

 

67

 

 

 

0.2

%

Total

 

 

628

 

 

$

287,997

 

 

 

100.0

%

 

 

27,323

 

 

 

100.0

%

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

24

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Portfolio Occupancy

(unaudited, based on square feet)

 

    

 

 

 

 

 

 

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2020 Broadstone Net Lease, Inc. All rights reserved.

25

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

Definitions and Explanations

Adjusted NOI, Annualized Adjusted NOI, Adjusted Cash NOI and Annualized Adjusted Cash NOI: Our reported results and net earnings per diluted share are presented in accordance with accounting principles generally accepted in the United States of America (GAAP). Adjusted NOI and Adjusted Cash NOI are non-GAAP financial measures that we believe are useful to assess property-level performance. We compute Adjusted NOI by adjusting Adjusted EBITDAre (defined below) to exclude costs incurred at the corporate level, including asset management, property management, and general and administrative expenses. The asset and property management expenses relate to historical fees paid to our former third-party manager, which are no longer incurred as a result of the internalization of management functions. Given the net lease nature of our portfolio, we do not incur general and administrative expenses at the property level. To compute Adjusted Cash NOI, we adjust Adjusted NOI to exclude non-cash items included in total revenues and property expenses, such as straight-line rental revenue and other amortization and non-cash items, based on an estimate calculated as if all investment and disposition activity that took place during the quarter had occurred on the first day of the quarter. We then annualize quarterly Adjusted NOI and Adjusted Cash NOI by multiplying each amount by four to compute Annualized Adjusted NOI and Annualized Adjusted Cash NOI, respectively, which are also non-GAAP financial measures. We believe Adjusted NOI and Adjusted Cash NOI provide useful and relevant information because they reflect only those income and expense items that are incurred at the property level and present such items on an unlevered basis. We believe that the exclusion of certain non-cash revenues and expenses from Adjusted Cash NOI 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. You should not unduly rely on Annualized Adjusted NOI and Annualized Adjusted Cash NOI as they are based on assumptions and estimates that may prove to be inaccurate. Our actual reported Adjusted NOI and Adjusted Cash NOI for future periods may be significantly different from our Annualized Adjusted NOI and Annualized Adjusted Cash NOI. Additionally, our computation of Adjusted NOI and Adjusted Cash NOI may differ from the methodology for calculating these metrics used by companies in our industry, and, therefore, may not be comparable to similarly titled measures reported by other companies.

Annualized Base Rent (ABR): We define ABR as the annualized contractual cash rent due for the last month of the reporting period, excluding the impacts of the short-term rent deferrals and abatements agreed to as a result of tenant requests for rent relief related to the COVID-19 pandemic, and adjusted to remove rent from properties sold during the month and to include a full month of contractual cash rent for properties acquired during the last month.

Cash Cap Rate: Cash Cap Rate represents the estimated first year cash yield to be generated on a real estate investment property, which was estimated at the time of investment based on the contractually specified cash base rent for the first full year after the date of the investment, divided by the purchase price for the property.

EBITDA, EBITDAre, Adjusted EBITDAre and Annualized Adjusted EBITDAre: EBITDA, EBITDAre, Adjusted EBITDAre and Annualized Adjusted EBITDAre are non-GAAP financial measures. We compute EBITDA as earnings before interest, income taxes and depreciation and amortization. EBITDA is a measure commonly used in our industry. We believe that this ratio provides investors and analysts with a measure of our performance that includes our operating results unaffected by the differences in capital structures, capital investment cycles and useful life of related assets compared to other companies in our industry. In 2017, Nareit, the worldwide representative voice for REITs and publicly traded real estate companies with an interest in the U.S. real estate and capital markets, issued a white paper recommending that companies that report EBITDA also report EBITDAre in financial reports. We compute EBITDAre in accordance with the definition adopted by Nareit. Nareit defines EBITDAre as EBITDA excluding gains (loss) from the sales of depreciable property and provisions for impairment on investment in real estate. We believe EBITDA and EBITDAre are useful to investors and analysts because they provide important supplemental information about our operating performance exclusive of certain non-cash and other costs. Adjusted EBITDAre represents EBITDAre, adjusted to reflect revenue producing acquisitions and dispositions for the quarter as if such acquisitions and dispositions had occurred as of the beginning of the quarter, and to exclude certain GAAP income and expense amounts that are either non-cash, such as cost of debt extinguishments or the change in fair value of our earnout liability, or that we believe are one time, or unusual in nature because they relate to unique circumstances or transactions that had not previously occurred and which we do not anticipate occurring in the future, and to eliminate the impact of lease termination fees, which are not a result of normal operations. We believe that excluding these items, which are not key drivers of our investment decisions and may cause short-term fluctuations in net income, provides a useful supplemental measure to investors and analysts in assessing the net earnings contribution of our real estate portfolio. We annualize quarterly Adjusted EBITDAre by multiplying it by four to compute Annualized Adjusted EBITDAre. Our reported EBITDA, EBITDAre, Adjusted EBITDAre and Annualized Adjusted EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider these measures as alternatives to net income or cash flows from operating activities determined in accordance with GAAP.

Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO): FFO and AFFO 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 Nareit, which defines FFO as GAAP net income or loss adjusted to exclude net gains (losses) from sales of certain depreciated real estate assets, depreciation and amortization expense from real estate assets, gains and losses from change in control, and impairment charges related to certain 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 and non-recurring revenues and expenses, including straight-line rents, contingent earnout (income) or expense, cost of debt extinguishments, amortization of lease intangibles, amortization of debt issuance costs, amortization of net mortgage premiums, (gain) loss on interest rate swaps and other non-cash interest expense, stock based compensation expense, severance, realized gains or losses on foreign currency transactions, internalization expenses, 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 | © 2020 Broadstone Net Lease, Inc. All rights reserved.

26

 

Q3 2020 SUPPLEMENTAL INFORMATION

 

 

 

 

Definitions and Explanations (continued)

Gross Debt: We define Gross Debt as total debt plus deferred financing costs.

Net Debt: Net Debt is a non-GAAP financial measure. We define Net Debt as our Gross Debt less cash and cash equivalents and restricted cash.

Occupancy: Occupancy or a specified percentage of our portfolio that is “occupied” means the quotient of (1) the total square footage of our properties minus the square footage of our properties that are vacant and from which we are not receiving any rental payment, and (2) the total square footage of our properties as of a specified date.

Rent Coverage Ratio: Rent Coverage Ratio means the ratio of tenant-reported or, when available, management’s estimate, based on tenant-reported financial information, of annual earnings before interest, taxes, depreciation, amortization, and cash rent attributable to the leased property (or properties, in the case of a master lease) to the annualized base rental obligation as of a specified date.

 

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