EX-99.2 3 bnl-ex99_2.htm EX-99.2 EX-99.2

 

Exhibit 99.2img213941062_0.jpg

Q1 2022 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 leased on a long-term basis to a diversified group of tenants. www.broadstone.com

 

 


 

Table of Contents

 

Section

Page

img213941062_1.jpg 

img213941062_2.jpg 

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About the Data

3

Company Overview

4

Quarterly Financial Summary

5

Balance Sheet

6

Income Statement Summary

7

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

8

EBITDA, EBITDAre, and Other Non-GAAP Operating Measures

9

Lease Revenues Detail

10

Capital Structure

11

Equity Rollforward

12

Debt Outstanding

13

Net Debt Metrics

14

Covenants

14

Debt Maturities

15

Acquisitions

16

Dispositions

16

Portfolio at a Glance: Key Metrics

17

Diversification: Tenants and Brands

18-19

Diversification: Property Type

20-21

Key Statistics by Property Type

22

Diversification: Tenant Industry

23

Diversification: Geography

24

Lease Expirations

25

Portfolio Occupancy

26

Definitions and Explanations

27-28

 

 

 

 

 

 

 

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2022 Broadstone Net Lease, LLC. All rights reserved. 2

 


 

About the Data

 

This data and other information described herein are as of and for the three months ended March 31, 2022 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 Broadstone Net Lease, Inc.'s Quarterly Report on Form 10-Q for the three months ended March 31, 2022, including the financial statements and the management's discussion and analysis of financial condition and results of operations sections.

 

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, including but not limited to increases in the rate of inflation and/or interest rates, 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 | © 2022 Broadstone Net Lease, LLC. All rights reserved. 3

 


 

Company Overview

 

Broadstone Net Lease, Inc. (NYSE:BNL) (the "Company," "BNL," "us," "our" and "we") is a real estate investment trust ("REIT") that acquires, owns, and manages primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. Since our inception, we have selectively invested in real estate across the industrial, healthcare, restaurant, retail, and office 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 core business operations rather than real estate ownership.

 

Executive Team

Christopher J. Czarnecki

Chief Executive Officer, President, and Director

Ryan M. Albano

Executive Vice President and Chief Financial Officer

John D. Moragne

Executive Vice President and Chief Operating Officer

John D. Callan, Jr.

Senior Vice President, General Counsel, and Secretary

Michael B. Caruso

Senior Vice President, Corporate Finance & Investor Relations

Timothy D. Dieffenbacher

Senior Vice President, Chief Accounting Officer, and Treasurer

Kevin M. Fennell

Senior Vice President, Capital Markets & Credit Risk

Laurier James Lessard, Jr.

Senior Vice President, Asset Management

Roderick A. Pickney

Senior Vice President, Acquisitions

Molly Kelly Wiegel

Senior Vice President, Human Resources

Andrea T. Wright

Senior Vice President, Property Management

 

Board of Directors

Laurie A. Hawkes

Chairman of the Board

Christopher J. Czarnecki

Chief Executive Officer and President

Denise Brooks-Williams

Michael A. Coke

David M. Jacobstein

Agha S. Khan

Shekar Narasimhan

Geoffrey H. Rosenberger

James H. Waters

 

 

Company Contact Information

Michael Caruso
SVP, Corporate Finance & Investor Relations

michael.caruso@broadstone.com

585-402-7842

 

 

Transfer Agent

Computershare Trust Company, N.A.

150 Royall Street

Canton, Massachusetts 02021

800-736-3001

 

 

 

 

 

 

 

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2022 Broadstone Net Lease, LLC. All rights reserved. 4

 


 

Quarterly Financial Summary

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

 

 

 

Q1 2022

 

 

Q4 2021

 

 

Q3 2021

 

 

Q2 2021

 

 

Q1 2021

 

Financial Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in rental property

 

$

4,431,929

 

 

$

4,234,544

 

 

$

4,110,958

 

 

$

3,954,597

 

 

$

3,794,850

 

Less accumulated depreciation

 

 

(454,122

)

 

 

(430,141

)

 

 

(407,354

)

 

 

(390,236

)

 

 

(369,683

)

Investment in rental property, net

 

 

3,977,807

 

 

 

3,804,403

 

 

 

3,703,604

 

 

 

3,564,361

 

 

 

3,425,167

 

Cash and cash equivalents

 

 

54,103

 

 

 

21,669

 

 

 

16,182

 

 

 

78,987

 

 

 

10,205

 

Restricted cash

 

 

11,444

 

 

 

6,100

 

 

 

3,895

 

 

 

8,021

 

 

 

8,145

 

Total assets

 

 

4,852,520

 

 

 

4,618,648

 

 

 

4,501,972

 

 

 

4,423,611

 

 

 

4,206,045

 

Unsecured revolving credit facility

 

 

266,118

 

 

 

102,000

 

 

 

 

 

 

 

 

 

15,000

 

Mortgage, net

 

 

96,141

 

 

 

96,846

 

 

 

97,530

 

 

 

105,748

 

 

 

106,559

 

Unsecured term loans, net

 

 

586,884

 

 

 

646,671

 

 

 

646,458

 

 

 

910,994

 

 

 

910,732

 

Senior unsecured notes, net

 

 

843,990

 

 

 

843,801

 

 

 

843,665

 

 

 

472,637

 

 

 

472,551

 

Total liabilities

 

 

1,961,200

 

 

 

1,877,510

 

 

 

1,785,847

 

 

 

1,700,103

 

 

 

1,713,348

 

Total Broadstone Net Lease, Inc.
   stockholders' equity

 

 

2,724,641

 

 

 

2,577,292

 

 

 

2,552,004

 

 

 

2,554,653

 

 

 

2,312,532

 

Total equity (book value)

 

 

2,891,320

 

 

 

2,741,138

 

 

 

2,716,125

 

 

 

2,723,508

 

 

 

2,492,697

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

93,841

 

 

 

92,642

 

 

 

122,777

 

 

 

84,759

 

 

 

82,698

 

General and administrative -
   other

 

 

7,899

 

 

 

7,501

 

 

 

7,628

 

 

 

7,704

 

 

 

8,864

 

Stock based compensation

 

 

929

 

 

 

1,025

 

 

 

924

 

 

 

951

 

 

 

1,769

 

General and administrative

 

 

8,828

 

 

 

8,526

 

 

 

8,552

 

 

 

8,655

 

 

 

10,633

 

Total operating expenses

 

 

48,162

 

 

 

46,649

 

 

 

76,065

 

 

 

44,452

 

 

 

47,963

 

Interest expense

 

 

16,896

 

 

 

16,997

 

 

 

15,611

 

 

 

15,430

 

 

 

16,108

 

Net income

 

 

28,441

 

 

 

32,226

 

 

 

30,522

 

 

 

22,820

 

 

 

23,960

 

Net earnings per common share,
   diluted

 

$

0.16

 

 

$

0.19

 

 

$

0.18

 

 

$

0.14

 

 

$

0.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

 

61,504

 

 

 

62,152

 

 

 

91,947

 

 

 

50,184

 

 

 

51,929

 

FFO per share, diluted

 

$

0.35

 

 

$

0.36

 

 

$

0.54

 

 

$

0.32

 

 

$

0.33

 

Core FFO

 

 

64,076

 

 

 

62,232

 

 

 

59,769

 

 

 

55,816

 

 

 

52,606

 

Core FFO per share, diluted

 

$

0.37

 

 

$

0.36

 

 

$

0.35

 

 

$

0.35

 

 

$

0.33

 

AFFO

 

 

60,401

 

 

 

58,692

 

 

 

55,836

 

 

 

52,024

 

 

 

49,410

 

AFFO per share, diluted

 

$

0.35

 

 

$

0.34

 

 

$

0.33

 

 

$

0.33

 

 

$

0.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating
   activities

 

 

59,104

 

 

 

57,619

 

 

 

88,303

 

 

 

47,235

 

 

 

51,780

 

Net cash (used in) provided by
   investing activities

 

 

(207,678

)

 

 

(133,925

)

 

 

(205,667

)

 

 

(175,051

)

 

 

(67,661

)

Net cash provided by (used in)
   financing activities

 

 

186,352

 

 

 

83,998

 

 

 

50,433

 

 

 

196,474

 

 

 

(76,497

)

Distributions declared

 

 

48,115

 

 

 

45,857

 

 

 

43,423

 

 

 

43,484

 

 

 

39,653

 

Distributions declared per diluted
   share

 

$

0.265

 

 

$

0.265

 

 

$

0.255

 

 

$

0.255

 

 

$

0.250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Properties

 

 

752

 

 

 

726

 

 

 

696

 

 

 

684

 

 

 

661

 

Rentable square feet

 

32.8M

 

 

32.2M

 

 

31.4M

 

 

30.2M

 

 

28.4M

 

Occupancy

 

 

99.8

%

 

 

99.8

%

 

 

99.8

%

 

 

99.7

%

 

 

99.7

%

Weighted average remaining
   lease term (years)

 

 

10.5

 

 

 

10.5

 

 

 

10.6

 

 

 

10.4

 

 

 

10.6

 

 

 

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2022 Broadstone Net Lease, LLC. All rights reserved. 5

 


 

 

Balance Sheet

(unaudited, in thousands)

 

 

 

March 31,
2022

 

 

December 31,
2021

 

 

September 30,
2021

 

 

June 30,
2021

 

 

March 31,
2021

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounted for using the operating method:

 

 

 

 

 

 

 

 

 

 

Land

 

$

709,962

 

 

$

655,374

 

 

$

616,917

 

 

$

597,779

 

 

$

572,381

 

Land improvements

 

 

300,300

 

 

 

295,329

 

 

 

291,045

 

 

 

291,981

 

 

 

282,426

 

Buildings and improvements

 

 

3,381,990

 

 

 

3,242,618

 

 

 

3,161,728

 

 

 

3,023,490

 

 

 

2,898,615

 

Equipment

 

 

10,422

 

 

 

11,870

 

 

 

11,870

 

 

 

11,870

 

 

 

11,870

 

Total accounted for using the
   operating method

 

 

4,402,674

 

 

 

4,205,191

 

 

 

4,081,560

 

 

 

3,925,120

 

 

 

3,765,292

 

Less accumulated depreciation

 

 

(454,122

)

 

 

(430,141

)

 

 

(407,354

)

 

 

(390,236

)

 

 

(369,683

)

Accounted for using the
   operating method, net

 

 

3,948,552

 

 

 

3,775,050

 

 

 

3,674,206

 

 

 

3,534,884

 

 

 

3,395,609

 

Accounted for using the direct
   financing method

 

 

28,684

 

 

 

28,782

 

 

 

28,830

 

 

 

28,911

 

 

 

28,991

 

Accounted for using the sales-type
   method

 

 

571

 

 

 

571

 

 

 

568

 

 

 

566

 

 

 

567

 

Investment in rental property, net

 

 

3,977,807

 

 

 

3,804,403

 

 

 

3,703,604

 

 

 

3,564,361

 

 

 

3,425,167

 

Cash and cash equivalents

 

 

54,103

 

 

 

21,669

 

 

 

16,182

 

 

 

78,987

 

 

 

10,205

 

Accrued rental income

 

 

120,117

 

 

 

116,874

 

 

 

112,163

 

 

 

109,278

 

 

 

105,674

 

Tenant and other receivables, net

 

 

1,160

 

 

 

1,310

 

 

 

940

 

 

 

618

 

 

 

1,022

 

Prepaid expenses and other assets

 

 

22,525

 

 

 

17,275

 

 

 

13,819

 

 

 

18,846

 

 

 

18,862

 

Interest rate swap, assets

 

 

8,944

 

 

 

 

 

 

 

 

 

 

 

 

239

 

Goodwill

 

 

339,769

 

 

 

339,769

 

 

 

339,769

 

 

 

339,769

 

 

 

339,769

 

Intangible lease assets, net

 

 

311,277

 

 

 

303,642

 

 

 

301,046

 

 

 

296,134

 

 

 

288,592

 

Debt issuance costs – unsecured
   revolving credit facility, net

 

 

7,427

 

 

 

4,065

 

 

 

4,658

 

 

 

5,250

 

 

 

5,842

 

Leasing fees, net

 

 

9,391

 

 

 

9,641

 

 

 

9,791

 

 

 

10,368

 

 

 

10,673

 

Total assets

 

$

4,852,520

 

 

$

4,618,648

 

 

$

4,501,972

 

 

$

4,423,611

 

 

$

4,206,045

 

Liabilities and equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured revolving credit facility

 

$

266,118

 

 

$

102,000

 

 

$

 

 

$

 

 

$

15,000

 

Mortgages, net

 

 

96,141

 

 

 

96,846

 

 

 

97,530

 

 

 

105,748

 

 

 

106,559

 

Unsecured term loans, net

 

 

586,884

 

 

 

646,671

 

 

 

646,458

 

 

 

910,994

 

 

 

910,732

 

Senior unsecured notes, net

 

 

843,990

 

 

 

843,801

 

 

 

843,665

 

 

 

472,637

 

 

 

472,551

 

Interest rate swap, liabilities

 

 

1,154

 

 

 

27,171

 

 

 

36,196

 

 

 

46,335

 

 

 

43,662

 

Earnout liability

 

 

 

 

 

 

 

 

 

 

 

10,063

 

 

 

6,385

 

Accounts payable and other liabilities

 

 

40,611

 

 

 

38,038

 

 

 

35,732

 

 

 

32,279

 

 

 

31,743

 

Dividends payable

 

 

47,682

 

 

 

45,914

 

 

 

43,874

 

 

 

43,184

 

 

 

39,329

 

Accrued interest payable

 

 

9,845

 

 

 

6,473

 

 

 

9,895

 

 

 

3,885

 

 

 

9,896

 

Intangible lease liabilities, net

 

 

68,775

 

 

 

70,596

 

 

 

72,497

 

 

 

74,978

 

 

 

77,491

 

Total liabilities

 

 

1,961,200

 

 

 

1,877,510

 

 

 

1,785,847

 

 

 

1,700,103

 

 

 

1,713,348

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadstone Net Lease, Inc. stockholders'
   equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, $0.00025 par value

 

 

42

 

 

 

41

 

 

 

40

 

 

 

40

 

 

 

36

 

Additional paid-in capital

 

 

3,056,560

 

 

 

2,924,168

 

 

 

2,895,219

 

 

 

2,890,131

 

 

 

2,625,320

 

Cumulative distributions in excess of
   retained earnings

 

 

(336,988

)

 

 

(318,476

)

 

 

(305,665

)

 

 

(293,622

)

 

 

(274,140

)

Accumulated other comprehensive
   loss

 

 

5,027

 

 

 

(28,441

)

 

 

(37,590

)

 

 

(41,896

)

 

 

(38,684

)

Total Broadstone Net Lease, Inc.
   stockholders’ equity

 

 

2,724,641

 

 

 

2,577,292

 

 

 

2,552,004

 

 

 

2,554,653

 

 

 

2,312,532

 

Non-controlling interests

 

 

166,679

 

 

 

163,846

 

 

 

164,121

 

 

 

168,855

 

 

 

180,165

 

Total equity

 

 

2,891,320

 

 

 

2,741,138

 

 

 

2,716,125

 

 

 

2,723,508

 

 

 

2,492,697

 

Total liabilities and equity

 

$

4,852,520

 

 

$

4,618,648

 

 

$

4,501,972

 

 

$

4,423,611

 

 

$

4,206,045

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2022 Broadstone Net Lease, LLC. All rights reserved. 6

 


 

Income Statement Summary

(unaudited, in thousands, except per share data)

 

 

 

Three Months Ended

 

 

 

March 31,
2022

 

 

December 31,
2021

 

 

September 30,
2021

 

 

June 30,
2021

 

 

March 31,
2021

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease revenues, net

 

$

93,841

 

 

$

92,642

 

 

$

122,777

 

 

$

84,759

 

 

$

82,698

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

34,290

 

 

 

33,476

 

 

 

36,682

 

 

 

31,225

 

 

 

30,713

 

Property and operating
   expense

 

 

5,044

 

 

 

4,440

 

 

 

4,842

 

 

 

4,572

 

 

 

4,605

 

General and administrative

 

 

8,828

 

 

 

8,526

 

 

 

8,552

 

 

 

8,655

 

 

 

10,633

 

Provision for impairment of
   investment in rental
   properties

 

 

 

 

 

207

 

 

 

25,989

 

 

 

 

 

 

2,012

 

Total operating expenses

 

 

48,162

 

 

 

46,649

 

 

 

76,065

 

 

 

44,452

 

 

 

47,963

 

Other income (expenses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

6

 

 

 

 

 

 

6

 

 

 

5

 

Interest expense

 

 

(16,896

)

 

 

(16,997

)

 

 

(15,611

)

 

 

(15,430

)

 

 

(16,108

)

Cost of debt extinguishment

 

 

 

 

 

 

 

 

(242

)

 

 

 

 

 

(126

)

Gain on sale of real estate

 

 

1,196

 

 

 

3,732

 

 

 

1,220

 

 

 

3,838

 

 

 

4,733

 

Income taxes

 

 

(412

)

 

 

(457

)

 

 

(473

)

 

 

(301

)

 

 

(413

)

Change in fair value of
   earnout liability

 

 

 

 

 

 

 

 

(1,059

)

 

 

(5,604

)

 

 

1,124

 

Other (expenses) income

 

 

(1,126

)

 

 

(51

)

 

 

(25

)

 

 

4

 

 

 

10

 

Net income

 

 

28,441

 

 

 

32,226

 

 

 

30,522

 

 

 

22,820

 

 

 

23,960

 

Net income attributable to
   non-controlling interests

 

 

(1,683

)

 

 

(1,935

)

 

 

(1,824

)

 

 

(1,606

)

 

 

(1,737

)

Net income attributable to
   Broadstone Net Lease, Inc.

 

$

26,758

 

 

$

30,291

 

 

$

28,698

 

 

$

21,214

 

 

$

22,223

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

Basic1

 

 

163,809

 

 

 

161,545

 

 

 

159,226

 

 

 

146,119

 

 

 

145,338

 

Diluted1

 

 

174,288

 

 

 

172,094

 

 

 

169,587

 

 

 

157,430

 

 

 

156,724

 

Net earnings per common share2

 

 

 

 

 

 

 

Basic and diluted

 

$

0.16

 

 

$

0.19

 

 

$

0.18

 

 

$

0.14

 

 

$

0.15

 

1 Excludes 370,539, 373,678, 378,244, 386,772, and 334,413 weighted average shares of unvested restricted common stock for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively.

2 Excludes $0.1 million from the numerator for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, related to dividends declared on shares of unvested restricted common stock.

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2022 Broadstone Net Lease, LLC. All rights reserved. 7

 


 

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

(unaudited, in thousands, except per share data)

 

 

 

Three Months Ended

 

 

 

March 31,
2022

 

 

December 31,
2021

 

 

September 30,
2021

 

 

June 30,
2021

 

 

March 31,
2021

 

Net income

 

$

28,441

 

 

$

32,226

 

 

$

30,522

 

 

$

22,820

 

 

$

23,960

 

Real property depreciation and
   amortization

 

 

34,259

 

 

 

33,451

 

 

 

36,656

 

 

 

31,202

 

 

 

30,690

 

Gain on sale of real estate

 

 

(1,196

)

 

 

(3,732

)

 

 

(1,220

)

 

 

(3,838

)

 

 

(4,733

)

Provision for impairment of investment
   in rental properties

 

 

 

 

 

207

 

 

 

25,989

 

 

 

 

 

 

2,012

 

FFO

 

$

61,504

 

 

$

62,152

 

 

$

91,947

 

 

$

50,184

 

 

$

51,929

 

Net write-offs of accrued rental income

 

 

1,326

 

 

 

 

 

 

1,496

 

 

 

 

 

 

442