10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2022, or

☐ Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number 001-39529

BROADSTONE NET LEASE, INC.

(Exact name of registrant as specified in its charter)

Maryland	26-1516177
(State or other jurisdiction of incorporation or organization)	(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)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.00025 par value	BNL	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 173,115,020 shares of the Registrant's Common Stock, $0.00025 par value per share, outstanding as of August 2, 2022.

BROADSTONE NET LEASE, INC.

TABLE OF CONTENTS

		Page
Part I - FINANCIAL INFORMATION		1
Item 1.	Financial Statements	1
	Condensed Consolidated Balance Sheets (Unaudited)	1
	Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)	2
	Condensed Consolidated Statements of Stockholders' Equity (Unaudited)	3
	Condensed Consolidated Statements of Cash Flows (Unaudited)	5
	Notes to the Condensed Consolidated Financial Statements (Unaudited)	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	24
	Cautionary Note Regarding Forward-Looking Statements	24
	Regulation FD Disclosures	24
	Explanatory Note and Certain Defined Terms	24
	Overview	25
	Real Estate Portfolio Information	26
	Results of Operations	34
	Liquidity and Capital Resources	39
	Derivative Instruments and Hedging Activities	42
	Cash Flows	42
	Non-GAAP Measures	43
	Critical Accounting Policies and Estimates	46
	Impact of Recent Accounting Pronouncements	46
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46
Item 4.	Controls and Procedures	47
Part II - OTHER INFORMATION		48
Item 1.	Legal Proceedings	48
Item 1A.	Risk Factors	48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 3.	Defaults upon Senior Securities	48
Item 4.	Mine Safety Disclosures	48
Item 5.	Other Information	48
Item 6.	Exhibits	49

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

Broadstone Net Lease, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except per share amounts)

	June 30, 2022			December 31, 2021
Assets
Accounted for using the operating method:
Land	$	731,208		$	655,374
Land improvements		320,513			295,329
Buildings and improvements		3,503,478			3,242,618
Equipment		10,422			11,870
Total accounted for using the operating method		4,565,621			4,205,191
Less accumulated depreciation		(479,952	)		(430,141	)
Accounted for using the operating method, net		4,085,669			3,775,050
Accounted for using the direct financing method		28,584			28,782
Accounted for using the sales-type method		571			571
Investment in rental property, net		4,114,824			3,804,403
Cash and cash equivalents		16,813			21,669
Accrued rental income		124,297			116,874
Tenant and other receivables, net		2,069			1,310
Prepaid expenses and other assets		22,916			17,275
Interest rate swap, assets		26,562			—
Goodwill		339,769			339,769
Intangible lease assets, net		316,119			303,642
Debt issuance costs – unsecured revolving credit facility, net		6,956			4,065
Leasing fees, net		9,117			9,641
Total assets	$	4,979,442		$	4,618,648
Liabilities and equity
Unsecured revolving credit facility	$	320,657		$	102,000
Mortgages, net		95,453			96,846
Unsecured term loans, net		587,098			646,671
Senior unsecured notes, net		844,178			843,801
Interest rate swap, liabilities		—			27,171
Accounts payable and other liabilities		42,923			38,038
Dividends payable		49,541			45,914
Accrued interest payable		6,086			6,473
Intangible lease liabilities, net		66,864			70,596
Total liabilities		2,012,800			1,877,510
Commitments and contingencies (See Note 18)
Equity
Broadstone Net Lease, Inc. stockholders' equity:
Preferred stock, $0.001 par value; 20,000 shares authorized, no shares issued or outstanding		—			—
Common stock, $0.00025 par value; 500,000 shares authorized, 172,023 and 162,383 shares issued    and outstanding at June 30, 2022 and December 31, 2021, respectively		43			41
Additional paid-in capital		3,125,377			2,924,168
Cumulative distributions in excess of retained earnings		(350,127	)		(318,476	)
Accumulated other comprehensive income (loss)		23,397			(28,441	)
Total Broadstone Net Lease, Inc. stockholders' equity		2,798,690			2,577,292
Non-controlling interests		167,952			163,846
Total equity		2,966,642			2,741,138
Total liabilities and equity	$	4,979,442		$	4,618,648

The accompanying notes are an integral part of these condensed consolidated financial statements.

1

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 June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Revenues
Lease revenues, net	$	98,013		$	84,759		$	191,854		$	167,457
Operating expenses
Depreciation and amortization		35,511			31,225			69,801			61,938
Property and operating expense		4,696			4,572			9,740			9,177
General and administrative		9,288			8,655			18,116			19,288
Provision for impairment of investment in rental properties		1,380			—			1,380			2,012
Total operating expenses		50,875			44,452			99,037			92,415
Other income (expenses)
Interest income		—			6			—			11
Interest expense		(17,888	)		(15,430	)		(34,784	)		(31,538	)
Cost of debt extinguishment		—			—			—			(126	)
Gain on sale of real estate		4,071			3,838			5,267			8,571
Income taxes		(401	)		(301	)		(813	)		(714	)
Change in fair value of earnout liability		—			(5,604	)		—			(4,480	)
Other income		2,632			4			1,506			14
Net income		35,552			22,820			63,993			46,780
Net income attributable to non-controlling interests		(2,036	)		(1,606	)		(3,719	)		(3,343	)
Net income attributable to Broadstone Net Lease, Inc.	$	33,516		$	21,214		$	60,274		$	43,437
Weighted average number of common shares outstanding
Basic		169,555			146,119			166,698			145,728
Diluted		180,256			157,430			177,346			157,115
Net earnings per share attributable to common stockholders
Basic and diluted	$	0.20		$	0.14		$	0.36		$	0.30
Comprehensive income
Net income	$	35,552		$	22,820		$	63,993		$	46,780
Other comprehensive income
Change in fair value of interest rate swaps		18,772			(2,911	)		53,733			25,769
Realized loss (gain) on interest rate swaps		695			(42	)		1,354			(83	)
Comprehensive income		55,019			19,867			119,080			72,466
Comprehensive income attributable to non-controlling interests		(3,151	)		(1,399	)		(6,941	)		(5,212	)
Comprehensive income attributable to Broadstone Net Lease, Inc.	$	51,868		$	18,468		$	112,139		$	67,254

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

Broadstone Net Lease, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders' Equity

(Unaudited)

(in thousands, except per share amounts)

	Common Stock		Additional Paid-in Capital			Cumulative Distributions in Excess of Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interests			Total Stockholders' Equity
Balance, January 1, 2022	$	41	$	2,924,168		$	(318,476	)	$	(28,441	)	$	163,846		$	2,741,138
Net income		—		—			26,758			—			1,683			28,441
Issuance of 6,427 shares of common stock		1		136,825			—			—			—			136,826
Offering costs, discounts, and commissions		—		(2,218	)		—			—			—			(2,218	)
Stock-based compensation, net of one share    of restricted stock forfeited		—		929			—			—			—			929
Retirement of 59 shares of common stock		—		(1,301	)		—			—			—			(1,301	)
Distributions declared ($0.265 per share and OP Unit)		—		—			(45,270	)		—			(2,845	)		(48,115	)
Change in fair value of interest rate swap agreements		—		—			—			32,893			2,068			34,961
Realized loss on interest rate swap agreements		—		—			—			620			39			659
Adjustment to non-controlling interests		—		(1,843	)		—			(45	)		1,888			—
Balance, March 31, 2022	$	42	$	3,056,560		$	(336,988	)	$	5,027		$	166,679		$	2,891,320
Net income		—		—			33,516			—			2,036			35,552
Issuance of 3,281 shares of common stock		1		69,420			—			—			—			69,421
Offering costs, discounts, and commissions		—		(992	)		—			—			—			(992	)
Stock-based compensation, net of eight shares    of restricted stock forfeited		—		1,381			—			—			—			1,381
Distributions declared ($0.270 per share and OP Unit)		—		—			(46,655	)		—			(2,852	)		(49,507	)
Change in fair value of interest rate swap agreements		—		—			—			17,697			1,075			18,772
Realized loss on interest rate swap agreements		—		—			—			655			40			695
Adjustment to non-controlling interests		—		(992	)		—			18			974			—
Balance, June 30, 2022	$	43	$	3,125,377		$	(350,127	)	$	23,397		$	167,952		$	2,966,642

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

Broadstone Net Lease, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders' Equity - Continued

(Unaudited)

(in thousands, except per share amounts)

	Common Stock		Class A Common Stock			Additional Paid-in Capital			Cumulative Distributions in Excess of Retained Earnings			Accumulated Other Comprehensive Loss			Non- controlling Interests			Total Stockholders' Equity
Balance, January 1, 2021	$	27	$	9		$	2,624,997		$	(259,673	)	$	(66,255	)	$	179,976		$	2,479,081
Net income		—		—			—			22,223			—			1,737			23,960
Issuance of 211 shares of common stock		—		—			233			—			—			—			233
Offering costs, discounts, and commissions		—		—			(500	)		—			—			—			(500	)
Stock-based compensation		—		—			1,769			—			—			—			1,769
Retirement of 45 shares of common stock		—		—			(832	)		—			—			—			(832	)
Conversion of 37,000 Class A common stock to    37,000 shares of common stock		9		(9	)		—			—			—			—			—
Conversion of 38 OP Units to 38 shares of    common stock		—		—			606			—			—			(606	)		—
Distributions declared ($0.250 per share and OP Unit)		—		—			—			(36,690	)		—			(2,963	)		(39,653	)
Change in fair value of interest rate swap agreements		—		—			—			—			26,602			2,078			28,680
Realized gain on interest rate swap agreements		—		—			—			—			(39	)		(2	)		(41	)
Adjustment to non-controlling interests		—		—			(953	)		—			1,008			(55	)		—
Balance, March 31, 2021	$	36	$	—		$	2,625,320		$	(274,140	)	$	(38,684	)	$	180,165		$	2,492,697
Net income		—		—			—			21,214			—			1,606			22,820
Issuance of 11,659 shares of common stock		4		—			264,795			—			—			—			264,799
Issuance of 248 OP Units		—		—			—			—			—			—			—
Offering costs, discounts, and commissions		—		—			(11,013	)		—			—			—			(11,013	)
Stock-based compensation		—		—			951			—			—			—			951
Retirement of 16 shares of common stock		—		—			(309	)		—			—			—			(309	)
Conversion of 1,127 OP Units to 1,127 shares of    common stock		—		—			17,859			—			—			(17,859	)		—
Distributions declared ($0.255 per share and OP Unit)		—		—			—			(40,696	)		—			(2,788	)		(43,484	)
Change in fair value of interest rate swap agreements		—		—			—			—			(2,708	)		(203	)		(2,911	)
Realized gain on interest rate swap agreements		—		—			—			—			(38	)		(4	)		(42	)
Adjustment to non-controlling interests		—		—			(7,472	)		—			(466	)		7,938			—
Balance, June 30, 2021	$	40	$	—		$	2,890,131		$	(293,622	)	$	(41,896	)	$	168,855		$	2,723,508

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

Broadstone Net Lease, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

	For the Six Months Ended June 30,
	2022			2021
Operating activities
Net income	$	63,993		$	46,780
Adjustments to reconcile net income including non-controlling interests to net cash provided by    operating activities:
Depreciation and amortization including intangibles associated with investment in rental property		67,476			60,570
Provision for impairment of investment in rental properties		1,380			2,012
Amortization of debt issuance costs and original issuance discount charged to interest expense		1,704			1,799
Stock-based compensation expense		2,310			2,720
Straight-line rent, direct financing and sales-type lease adjustments		(8,513	)		(9,609	)
Cost of debt extinguishment		—			126
Gain on sale of real estate		(5,267	)		(8,571	)
Change in fair value of earnout liability		—			4,480
Other non-cash items		628			139
Changes in assets and liabilities, net of acquisition:
Tenant and other receivables		(326	)		986
Prepaid expenses and other assets		1,040			1,088
Accounts payable and other liabilities		(6,079	)		(3,367	)
Accrued interest payable		(387	)		(138	)
Net cash provided by operating activities		117,959			99,015
Investing activities
Acquisition of rental property accounted for using the operating method		(377,966	)		(284,300	)
Capital expenditures and improvements		(18,289	)		(1,336	)
Proceeds from disposition of rental property, net		16,402			43,144
Change in deposits on investments in rental property		(118	)		(220	)
Net cash used in investing activities		(379,971	)		(242,712	)
Financing activities
Proceeds from issuance of common stock, net of $3,229 and $10,842 offering    costs, discounts, and commissions in 2022 and 2021, respectively		202,628			253,647
Principal payments on mortgages and unsecured term loans		(61,389	)		(51,593	)
Borrowings on unsecured revolving credit facility		380,783			175,600
Repayments on unsecured revolving credit facility		(161,000	)		(175,600	)
Cash distributions paid to stockholders		(88,361	)		(73,278	)
Cash distributions paid to non-controlling interests		(5,647	)		(5,927	)
Cash paid for earnout liability		—			(1,926	)
Debt issuance and extinguishment costs paid		(3,795	)		(946	)
Net cash provided by financing activities		263,219			119,977
Net increase (decrease) in cash and cash equivalents and restricted cash		1,207			(23,720	)
Cash and cash equivalents and restricted cash at beginning of period		27,769			110,728
Cash and cash equivalents and restricted cash at end of period	$	28,976		$	87,008
Reconciliation of cash and cash equivalents and restricted cash
Cash and cash equivalents at beginning of period	$	21,669		$	100,486
Restricted cash at beginning of period		6,100			10,242
Cash and cash equivalents and restricted cash at beginning of period	$	27,769		$	110,728
Cash and cash equivalents at end of period	$	16,813		$	78,987
Restricted cash at end of period		12,163			8,021
Cash and cash equivalents and restricted cash at end of period	$	28,976		$	87,008

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

Broadstone Net Lease, Inc. and Subsidiaries

Notes to the Condensed Consolidated Financial Statements (Unaudited)

1. Business Description

Broadstone Net Lease, Inc. (the "Corporation") is a Maryland corporation formed on October 18, 2007, that elected to be taxed as a real estate investment trust ("REIT") commencing with the taxable year ended December 31, 2008. The Corporation focuses on investing in income-producing, net leased commercial properties, primarily in the United States. The Corporation leases industrial, healthcare, restaurant, retail, and office commercial properties under long-term lease agreements. At June 30, 2022, the Corporation owned a diversified portfolio of 764 individual commercial properties with 757 properties located in 44 U.S. states and seven properties located in four Canadian provinces.

Broadstone Net Lease, LLC (the Corporation's operating company, or the "OP"), is the entity through which the Corporation conducts its business and owns (either directly or through subsidiaries) all of the Corporation's properties. The Corporation is the sole managing member of the OP. The membership units not owned by the Corporation are referred to as OP Units or non-controlling interests. As the Corporation conducts substantially all of its operations through the OP, it is structured as what is referred to as an umbrella partnership real estate investment trust ("UPREIT"). The Corporation, the OP, and its consolidated subsidiaries are collectively referred to as the "Company."

Pursuant to the Corporation's initial public offering ("IPO"), a new class of common stock ("Class A Common Stock") was issued. On March 20, 2021, each share of Class A Common Stock automatically converted into one share of common stock, and effective March 22, 2021, all shares of common stock were listed and freely tradeable on the NYSE under the symbol "BNL."

The following table summarizes the outstanding equity and economic ownership interest of the Corporation and the OP:

	June 30, 2022									December 31, 2021
(in thousands)	Shares of Common Stock			OP Units			Total Diluted Shares			Shares of Common Stock			OP Units			Total Diluted Shares
Ownership interest		172,023			10,323			182,346			162,383			10,323			172,706
Percent ownership of OP		94.3	%		5.7	%		100.0	%		94.0	%		6.0	%		100.0	%

Refer to Note 16 for further discussion regarding the calculation of weighted average shares outstanding.

6

2. Summary of Significant Accounting Policies

Interim Information

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information (Accounting Standards Codification ("ASC") 270, Interim Reporting) and Article 10 of the Securities and Exchange Commission's ("SEC") Regulation S-X. Accordingly, the Corporation has omitted certain footnote disclosures which would substantially duplicate those contained within the audited consolidated financial statements for the year ended December 31, 2021, included in the Company's 2021 Annual Report on Form 10-K, filed with the SEC on February 23, 2022. Therefore, the readers of this quarterly report should refer to those audited consolidated financial statements, specifically Note 2, Summary of Significant Accounting Policies, for further discussion of significant accounting policies and estimates. The Corporation believes all adjustments necessary for a fair presentation have been included in these interim Condensed Consolidated Financial Statements (which include only normal recurring adjustments).

Principles of Consolidation

The Condensed Consolidated Financial Statements include the accounts and operations of the Company. All intercompany balances and transactions have been eliminated in consolidation.

To the extent the Corporation has a variable interest in entities that are not evaluated under the variable interest entity ("VIE") model, the Corporation evaluates its interests using the voting interest entity model. The Corporation has complete responsibility for the day-to-day management of, authority to make decisions for, and control of the OP. Based on consolidation guidance, the Corporation has concluded that the OP is a VIE as the members in the OP do not possess kick-out rights or substantive participating rights. Accordingly, the Corporation consolidates its interest in the OP. However, because the Corporation holds the majority voting interest in the OP and certain other conditions are met, it qualifies for the exemption from providing certain disclosure requirements associated with investments in VIEs.

The portion of the OP not owned by the Corporation is presented as non-controlling interests as of and during the periods presented.

Basis of Accounting

The Condensed Consolidated Financial Statements have been prepared in accordance with GAAP.

Use of Estimates

The preparation of Condensed Consolidated Financial Statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include, but are not limited to, the allocation of purchase price between tangible and intangible assets acquired and liabilities assumed, the value of long-lived assets and goodwill, the provision for impairment, the depreciable lives of rental property, the amortizable lives of intangible assets and liabilities, the probability of collecting outstanding and future lease payments, the fair value of the earnout liability, the fair value of assumed debt, the fair value of the Company's interest rate swap agreements, and the determination of any uncertain tax positions. Accordingly, actual results may differ from those estimates.

Long-lived Asset Impairment

The Company reviews long-lived assets to be held and used for possible impairment when events or changes in circumstances indicate that their carrying amounts may not be recoverable. If, and when, such events or changes in circumstances are present, an impairment exists to the extent the carrying value of the long-lived asset or asset group exceeds the sum of the undiscounted cash flows expected to result from the use of the long-lived asset or asset group and its eventual disposition. Such cash flows include expected future operating income, as adjusted for trends and prospects, as well as the effects of demand, competition, and other factors. An impairment loss is measured as the amount by which the carrying amount of the long-lived asset or asset group exceeds its fair value. Significant judgment is made to determine if and when impairment should be taken. The Company's assessment of impairment as of June 30, 2022 and 2021 was based on the most current information available to the Company. Certain of the Company's properties may have fair values less than their carrying amounts. However, based on the Company's plans with respect to each of those properties, the Company believes that their carrying amounts are recoverable and therefore, no impairment charges were recognized other than those described below. If the operating conditions mentioned above deteriorate or if the Company's expected holding period for assets changes, subsequent tests for impairments could result in additional impairment charges in the future.

7

Inputs used in establishing fair value for real estate assets generally fall within Level 3 of the fair value hierarchy, which are characterized as requiring significant judgment as little or no current market activity may be available for validation. The main indicator used to establish the classification of the inputs is current market conditions, as derived through the use of published commercial real estate market information. The Company determines the valuation of impaired assets using generally accepted valuation techniques including discounted cash flow analysis, income capitalization, analysis of recent comparable sales transactions, actual sales negotiations, and bona fide purchase offers received from third parties. Management may consider a single valuation technique or multiple valuation techniques, as appropriate, when estimating the fair value of its real estate.

The following table summarizes the Company's impairment charges, resulting primarily from changes in the Company's long-term hold strategy, with respect to the individual properties:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands, except number of properties)	2022		2021		2022		2021
Number of properties		1		—		1		1
Impairment charge	$	1,380	$	—	$	1,380	$	2,012

Restricted Cash

Restricted cash includes escrow funds the Company maintains pursuant to the terms of certain mortgages, lease agreements, and undistributed proceeds from the sale of properties under Section 1031 of the Internal Revenue Code of 1986, as amended (the "Code"), and is reported within Prepaid expenses and other assets on the Condensed Consolidated Balance Sheets. Restricted cash consisted of the following:

	June 30,		December 31,
(in thousands)	2022		2021
Escrow funds and other	$	6,634	$	6,100
Undistributed 1031 proceeds		5,529		—
	$	12,163	$	6,100

Rent Received in Advance

Rent received in advance represents tenant payments received prior to the contractual due date, and is included in Accounts payable and other liabilities on the Condensed Consolidated Balance Sheets. Rent received in advance consisted of the following:

(in thousands)	June 30, 2022		December 31, 2021
Rent received in advance	$	13,533	$	15,162

Fair Value Measurements

Recurring Fair Value Measurements

The balances of financial instruments measured at fair value on a recurring basis are as follows (see Note 11):

	June 30, 2022
(in thousands)	Total		Level 1		Level 2		Level 3
Interest rate swap, assets	$	26,562	$	—	$	26,562	$	—

	December 31, 2021
(in thousands)	Total			Level 1		Level 2			Level 3
Interest rate swap, liabilities	$	(27,171	)	$	—	$	(27,171	)	$	—

8

Long-term Debt – The fair value of the Company's debt was estimated using Level 1, Level 2, and Level 3 inputs based on recent secondary market trades of the Company's 2031 Senior Unsecured Public Notes (see Note 9), recent financing transactions, estimates of the fair value of the property that serves as collateral for such debt, historical risk premiums for loans of comparable quality, current London Interbank Offered Rate ("LIBOR"), U.S. Treasury obligation interest rates, and discounted estimated future cash payments to be made on such debt. The discount rates estimated reflect the Company's judgment as to the approximate current lending rates for loans or groups of loans with similar maturities and assumes that the debt is outstanding through maturity. Market information, as available, or present value techniques were utilized to estimate the amounts required to be disclosed. Since such amounts are estimates that are based on limited available market information for similar transactions and do not acknowledge transfer or other repayment restrictions that may exist on specific loans, it is unlikely that the estimated fair value of any such debt could be realized by immediate settlement of the obligation.

The following table summarizes the carrying amount reported on the Condensed Consolidated Balance Sheets and the Company's estimate of the fair value of the unsecured revolving credit facility, mortgages, unsecured term loans, and senior unsecured notes which reflects the fair value of interest rate swaps:

(in thousands)	June 30, 2022		December 31, 2021
Carrying amount	$	1,856,377	$	1,699,160
Fair value		1,758,160		1,785,701

Non-recurring Fair Value Measurements

The Company's non-recurring fair value measurements at June 30, 2022 and December 31, 2021 consisted of the fair value of impaired real estate assets that were determined using Level 3 inputs.

Stock-Based Compensation

The Company has issued restricted stock awards ("RSAs") and performance-based restricted stock units ("PRSUs") under its 2020 Omnibus Equity and Incentive Plan (the "Equity Incentive Plan"). Subject to any adjustment as provided in the Equity Incentive Plan, up to 9,000,000 shares may be issued to awards granted under the Equity Incentive Plan. The Company accounts for stock-based incentives in accordance with ASC 718, Compensation – Stock Compensation, which requires that such compensation be recognized in the financial statements based on the award's estimated grant date fair value. The value of such awards is recognized as compensation expense in General and administrative expenses in the Condensed Consolidated Statements of Income and Comprehensive Income over the appropriate vesting period on a straight-line basis or at the cumulative amount vested at each balance sheet date, if greater. The Company records forfeitures during the period in which they occur by reversing all previously recorded stock compensation expense associated with the forfeited shares. Dividends declared on RSAs issued under the Equity Incentive Plan are recorded as Cumulative distributions in excess of retained earnings on the Condensed Consolidated Balance Sheets. Accumulated dividends related to forfeited RSAs are reversed through compensation expense in the period the forfeiture occurs. Dividends accrued on the PRSUs are recorded as Cumulative distributions in excess of retained earnings on the Condensed Consolidated Balance Sheets. Accumulated dividends accrued related to forfeited PRSUs are reversed in the period the forfeiture occurs.

Recently Adopted Accounting Standards

In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. The guidance in ASU 2020-06 simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separately present certain conversion features in equity. In addition, the amendments in ASU 2020-06 also simplify the guidance in ASC Subtopic 815-40, Derivatives and Hedging: Contracts in Entity's Own Equity, by removing certain criteria that must be satisfied in order to classify a contract as equity, which is expected to decrease the number of freestanding instruments and embedded derivatives accounted for as assets or liabilities. Finally, the amendments revise the guidance on calculating earnings per share, requiring use of the if-converted method for all convertible instruments. The amendments in ASU 2020-06 were effective for the Company beginning January 1, 2022. The Company uses the two-class method of computing basic and diluted earnings per share. Based on the nature of the Company's potentially dilutive instruments, the treasury stock method is not used in computing dilutive earnings per share. Accordingly, the adoption of ASU 2020-06 did not have a material impact on the Company.

9

3. Related-Party Transactions

Prior to the Company's internalization on February 7, 2020, the Company was externally managed by Broadstone Real Estate, LLC ("BRE") and Broadstone Asset Management, LLC (the "Asset Manager") subject to the direction, oversight, and approval of the Company's board of directors (the "Board of Directors"). As part of the internalization the Asset Manager and BRE merged into the Company. Accordingly, both BRE and the Asset Manager were related parties of the Company.

Earnout Consideration

In connection with the Company's internalization, the Company incurred a contingent obligation that would be payable to certain members of the Board of Directors and employees who had previously been owners and/or employees of BRE, upon the occurrence of certain events (see Note 4). On June 16, 2021, the Company achieved the earnout milestone applicable to tranche 1 of the earnout. As a result, the Company issued 145,195 shares of common stock, 247,899 OP Units and paid $1.9 million of cash during the three and six months ended June 30, 2021. The Company achieved the remaining volume-weighted average price ("VWAP") milestones and paid all earnout tranches (see Note 4) during the year ended December 31, 2021. As such, there was no such activity during the three and six months ended June 30, 2022.

Conversion of OP Units to Common Stock

During the three and six months ended June 30, 2021, in a non-cash transaction (see Note 17), the Company converted 1,019,874 OP Units held by an affiliated third party to 1,019,874 shares of common stock at a total conversion value of $16.2 million. There were no OP Units converted to common stock during the three and six months ended June 30, 2022.

4. Internalization

On February 7, 2020, the Company completed an internalization where the Company's management team and corporate staff, who were previously employed by BRE, became employees of an indirect subsidiary of the OP. The effect of the internalization has been reflected in the Company's operating results beginning on February 7, 2020.

In accordance with the Company's internalization, the Company was required to pay additional earnout consideration of up to $75.0 million payable in four tranches of $10.0 million, $15.0 million, $25.0 million, and $25.0 million if certain milestones related to the 40-day volume-weighted average price of a share of the Company's common stock ("VWAP per REIT Share") were achieved. The consideration consisted of a combination of cash, shares of the Company's common stock, and OP Units, based on the same proportions paid in the base consideration.

As of December 31, 2021, the Company achieved all four VWAP milestones, thereby triggering the payout of all earnout tranches. Below is a summary of the shares of common stock and OP Units issued, and cash paid for each earnout tranche:

(in thousands, except per share amounts)
	Shares of							40-Day
	Common Stock		OP Units					VWAP of a
Tranche	Issued		Issued		Cash Paid			REIT Share		Achievement Date
1		145		248	$	1,926	(a)	$	22.50	June 16, 2021
2		218		371		2,888	(a)		23.75	July 14, 2021
3		363		620		4,117			24.375	September 21, 2021
4		363		620		4,117			25.00	September 21, 2021

(a)Cash payments include amounts earned for dividends.

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5. Acquisitions of Rental Property

The Company closed on the following acquisitions during the six months ended June 30, 2022:

(in thousands, except number of properties)		Number of		Real Estate
Date	Property Type	Properties		Acquisition Price
January 7, 2022	Retail		2	$	2,573
February 10, 2022	Industrial		1		21,733
February 15, 2022	Retail		1		1,341
February 28, 2022	Industrial		1		5,678
March 4, 2022	Retail		6		79,061
March 31, 2022	Restaurant		16		99,587
April 12, 2022	Retail		1		1,680
April 12, 2022	Industrial		1		7,522
April 13, 2022	Industrial		1		16,250
April 19, 2022	Retail		1		1,780
May 16, 2022	Retail		1		2,264
June 7, 2022	Retail		1		11,510
June 13, 2022	Retail		1		1,638
June 15, 2022	Retail		1		1,884
June 21, 2022	Industrial		5		78,500
June 29, 2022	Healthcare		1		12,467
June 30, 2022	Industrial		1		29,500
			42	$	374,968	(a)

(a)Acquisition price excludes capitalized acquisition costs of $3.1 million and a $17.4 million building expansion agreed to as a forward commitment in connection with a prior acquisition (see Note 18).

The Company closed on the following acquisitions during the six months ended June 30, 2021:

(in thousands, except number of properties)		Number of		Real Estate
Date	Property Type	Properties		Acquisition Price
February 5, 2021	Healthcare		1	$	4,843
February 26, 2021	Restaurant	(b)			181
March 11, 2021	Retail		13		26,834
March 30, 2021	Retail		11		41,324
March 31, 2021	Healthcare		3		14,140
June 4, 2021	Retail		2		19,420
June 9, 2021	Industrial		1		8,500
June 9, 2021	Industrial		11		106,578
June 25, 2021	Retail		8		12,131
June 28, 2021	Healthcare		4		15,300
June 30, 2021	Retail		1		1,279
June 30, 2021	Healthcare		7		30,750
			62	$	281,280	(c)

(b)Acquisition of additional land adjacent to an existing property.

(c)Acquisition price excludes capitalized acquisition costs of $3.0 million.

11

The Company allocated the purchase price of these properties to the fair value of the assets acquired and liabilities assumed. The following table summarizes the purchase price allocation for completed real estate acquisitions:

	For the Six Months Ended June 30,
(in thousands)	2022				2021
Land	$	77,088			$	48,477
Land improvements		26,002				15,844
Buildings and improvements		253,500				197,064
Acquired in-place leases(d)		29,585				22,729
Acquired above-market lease (e)		—				211
Acquired below-market lease (f)		(76	)			—
Non-real estate liabilities assumed		(8,051	)			—
	$	378,048		(g)	$	284,325

(d)The weighted average amortization period for acquired in-place leases is 20 years and 14 years for acquisitions completed during the six months ended June 30, 2022 and 2021, respectively.

(e)The weighted average amortization period for the acquired above-market leases is 10 years for acquisitions completed during the six months ended June 30, 2021. There were no above-market leases acquired during the six months ended June 30, 2022.

(f)The weighted average amortization period for acquired below-market leases is nine years for acquisitions completed during the six months ended June 30, 2022. There were no below-market leases acquired during the six months ended June 30, 2021.

(g)Excludes $17.4 million building expansion agreed to as a forward commitment in connection with a prior acquisition (see Note 18).

The above acquisitions were funded using a combination of available cash on hand, and proceeds from equity issuances and revolving credit facility borrowings. All real estate acquisitions closed during the six months ended June 30, 2022 and 2021, qualified as asset acquisitions and, as such, acquisition costs have been capitalized.

Subsequent to June 30, 2022, the Company closed on the following acquisitions (see Note 19):

(in thousands, except number of properties)		Number of		Real Estate
Date	Property Type	Properties		Acquisition Price
July 1, 2022	Retail		2	$	3,052
July 7, 2022	Retail		1		2,171
July 8, 2022	Industrial		11		75,000
			14	$	80,223

6. Sale of Real Estate

The Company closed on the following sales of real estate, none of which qualified as discontinued operations:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(in thousands, except number of properties)	2022			2021			2022			2021
Number of properties disposed		3			11			4			19
Aggregate sale price	$	11,889		$	22,276		$	17,101		$	45,338
Aggregate carrying value		(7,311	)		(17,201	)		(11,135	)		(34,573	)
Additional sales expenses		(507	)		(1,237	)		(699	)		(2,194	)
Gain on sale of real estate	$	4,071		$	3,838		$	5,267		$	8,571

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7. Investment in Rental Property and Lease Arrangements

The Company generally leases its investment rental property to established tenants in the industrial, healthcare, restaurant, retail, and office property types. At June 30, 2022, the Company had 764 real estate properties, 751 of which were leased under leases that have been classified as operating leases, 10 that have been classified as direct financing leases, one that has been classified as a sales-type lease, and two that were vacant. Of the 10 leases classified as direct financing leases, three include land portions which are accounted for as operating leases. The sales-type lease includes a land portion which is accounted for as an operating lease. Most leases have initial terms of 10 to 20 years. The Company's leases generally provide for limited increases in rent as a result of fixed increases, increases in the Consumer Price Index ("CPI"), or increases in the tenant's sales volume. Generally, tenants are also required to pay all property taxes and assessments, substantially maintain the interior and exterior of the building, and maintain property and liability insurance coverage. The leases also typically provide for one or more multiple year renewal options, at the election of the tenant, and are subject to generally the same terms and conditions as the initial lease.

Investment in Rental Property – Accounted for Using the Operating Method

Depreciation expense on investment in rental property was as follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Depreciation	$	27,730	$	24,144	$	54,388	$	47,887

Estimated lease payments to be received under non-cancelable operating leases with tenants at June 30, 2022 are as follows:

(in thousands)
Remainder of 2022	$	178,218
2023		359,960
2024		357,102
2025		350,807
2026		341,436
Thereafter		2,695,940
	$	4,283,463

Since lease renewal periods are exercisable at the option of the tenant, the above amounts only include future lease payments due during the initial lease terms. Such amounts exclude any potential variable rent increases that are based on changes in the CPI or future variable rents which may be received under the leases based on a percentage of the tenant's gross sales. Additionally, certain of our leases provide tenants with the option to terminate their leases in exchange for termination penalties, or that are contingent upon the occurrence of a future event. Future lease payments within the table above have not been adjusted for these termination rights.

Investment in Rental Property – Direct Financing Leases

The Company's net investment in direct financing leases was comprised of the following:

(in thousands)	June 30, 2022			December 31, 2021
Undiscounted estimated lease payments to be received	$	40,983		$	42,602
Estimated unguaranteed residual values		15,203			15,203
Unearned revenue		(27,473	)		(28,893	)
Reserve for credit losses		(129	)		(130	)
Net investment in direct financing leases	$	28,584		$	28,782

Undiscounted estimated lease payments to be received under non-cancelable direct financing leases with tenants at June 30, 2022 are as follows:

(in thousands)
Remainder of 2022	$	1,622
2023		3,304
2024		3,361
2025		3,475
2026		3,547
Thereafter		25,674
	$	40,983

13

The above rental receipts do not include future lease payments for renewal periods, potential variable CPI rent increases, or variable percentage rent payments that may become due in future periods.

The following table summarizes amounts reported as Lease revenues, net on the Condensed Consolidated Statements of Income and Comprehensive Income:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(in thousands)	2022			2021			2022			2021
Contractual rental amounts billed for operating leases	$	87,505		$	75,011		$	171,901		$	148,256
Adjustment to recognize contractual operating lease billings on a    straight-line basis		5,090			4,724			10,111			9,533
Net write-offs of accrued rental income		—			—			(1,326	)		(442	)
Variable rental amounts earned		291			114			477			205
Earned income from direct financing leases		721			728			1,444			1,458
Interest income from sales-type leases		15			15			29			29
Operating expenses billed to tenants		4,263			4,196			8,998			8,584
Other income from real estate transactions		134			28			176			33
Adjustment to revenue recognized for uncollectible rental    amounts billed, net		(6	)		(57	)		44			(199	)
Total lease revenues, net	$	98,013		$	84,759		$	191,854		$	167,457

8. Intangible Assets and Liabilities

The following is a summary of intangible assets and liabilities and related accumulated amortization:

(in thousands)	June 30, 2022			December 31, 2021
Lease intangibles:
Acquired above-market leases	$	46,772		$	47,147
Less accumulated amortization		(18,052	)		(16,807	)
Acquired above-market leases, net		28,720			30,340
Acquired in-place leases		407,993			380,766
Less accumulated amortization		(120,594	)		(107,464	)
Acquired in-place leases, net		287,399			273,302
Total intangible lease assets, net	$	316,119		$	303,642
Acquired below-market leases	$	105,293		$	105,310
Less accumulated amortization		(38,429	)		(34,714	)
Intangible lease liabilities, net	$	66,864		$	70,596
Leasing fees	$	14,650		$	14,786
Less accumulated amortization		(5,533	)		(5,145	)
Leasing fees, net	$	9,117		$	9,641

Amortization of intangible lease assets and liabilities was as follows:

(in thousands)		For the Three Months Ended June 30,				For the Six Months Ended June 30,
Intangible	Financial Statement Presentation	2022		2021		2022		2021
Acquired in-place leases and leasing fees	Depreciation and amortization	$	7,749	$	7,058	$	15,350	$	14,005
Above-market and below-market leases	Lease revenues, net		1,170		665		2,331		1,418

Estimated future amortization of intangible assets and liabilities at June 30, 2022 is as follows:

(in thousands)
Remainder of 2022	$	13,338
2023		26,512
2024		25,752
2025		24,455
2026		23,105
Thereafter		145,210
	$	258,372

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9. Unsecured Credit Agreements

The following table summarizes the Company's unsecured credit agreements:

	Outstanding Balance
(in thousands, except interest rates)	June 30, 2022			December 31, 2021			Interest Rate	Maturity Date
Unsecured revolving    credit facility	$	320,657		$	102,000		Applicable reference rate + 0.85% (a) (b) (c)	Mar. 2026
Unsecured term loans:
2022 Unsecured Term Loan		—			60,000		one-month LIBOR + 1.00% (c)	Feb. 2022 (d)
2024 Unsecured Term Loan		190,000			190,000		one-month LIBOR + 1.00% (c)	Jun. 2024
2026 Unsecured Term Loan		400,000			400,000		one-month LIBOR + 1.00% (c)	Feb. 2026
Total unsecured term loans		590,000			650,000
Unamortized debt issuance costs, net		(2,902	)		(3,329	)
Total unsecured term loans, net		587,098			646,671
Senior unsecured notes:
2027 Senior Unsecured Notes -    Series A		150,000			150,000		4.84%	Apr. 2027
2028 Senior Unsecured Notes -    Series B		225,000			225,000		5.09%	Jul. 2028
2030 Senior Unsecured Notes -    Series C		100,000			100,000		5.19%	Jul. 2030
2031 Senior Unsecured Public Notes		375,000			375,000		2.60%	Sep. 2031
Total senior unsecured notes		850,000			850,000
Unamortized debt issuance costs and    original issuance discount, net		(5,822	)		(6,199	)
Total senior unsecured notes, net		844,178			843,801
Total unsecured debt, net	$	1,751,933		$	1,592,472

(a)At June 30, 2022, a balance of $243.0 million was subject to the one-month Secured Overnight Financing Rate of 1.69%. The remaining balance includes $100 million CAD borrowings remeasured to $77.7 million USD, which was subject to the one-month Canadian Dollar Offered Rate of 2.23%.

(b)At December 31, 2021, interest rate was one-month LIBOR plus 1.00%

(c)At June 30, 2022 and December 31, 2021, one-month LIBOR was 1.79% and 0.10%, respectively.

(d)The 2022 Unsecured Term Loan was paid in full in February 2022, with borrowings from the unsecured revolving credit facility.

At June 30, 2022, the weighted average interest rate on all outstanding borrowings was 3.33%, exclusive of interest rate swap agreements.

The Company is subject to various financial and operational covenants and financial reporting requirements pursuant to its unsecured credit agreements. These covenants require the Company to maintain certain financial ratios, including leverage, fixed charge coverage, debt service coverage, aggregate debt ratio, consolidated income available for debt to annual debt service charge, total unencumbered assets to total unsecured debt, and secured debt ratio, among others. As of June 30, 2022, and for all periods presented the Company believes it was in compliance with all of its loan covenants. Failure to comply with the covenants would result in a default which, if the Company were unable to cure or obtain a waiver from the lenders, could accelerate the repayment of the obligations. Further, in the event of default, the Company may be restricted from paying dividends to its stockholders in excess of dividends required to maintain its REIT qualification. Accordingly, an event of default could have a material and adverse impact on the Company.

On January 28, 2022, the Company amended and restated the unsecured revolving credit facility to increase the available borrowings to $1.0 billion and extend the maturity date to March 31, 2026. In addition to USD, borrowings under the unsecured revolving credit facility can be made in Pound Sterling, Euros or Canadian Dollars ("CAD") up to an aggregate amount of $500.0 million. Prior to the amendment, borrowings under the credit facility were subject to interest at variable rates based on LIBOR plus a margin based on the Company's current credit rating ranging between 0.825% to 1.55% per annum. Borrowings under the amended credit facility are subject to interest only payments at variable rates equal to the applicable reference rate plus a margin based on the Company's credit rating, ranging between 0.725% and 1.400%. In addition, the amended credit facility is subject to a facility fee on the amount of the revolving commitments, based on the Company's credit rating. The applicable facility fee is 0.200% per annum.

For the six months ended June 30, 2022, the Company incurred $3.8 million in debt issuance costs associated with the unsecured revolving credit facility. For the six months ended June 30, 2021, the Company incurred $1.0 million in debt issuance costs associated with the amended 2026 Unsecured Term Loan. The Company did not incur debt issuance costs during the three months ended June 30, 2022 and 2021.

15

For each separate debt instrument, on a lender by lender basis, in accordance with ASC 470-50, Debt Modifications and Extinguishment, the Company performed an assessment of whether the transaction was deemed to be new debt, a modification of existing debt, or an extinguishment of existing debt. Debt issuance costs are either deferred and amortized over the term of the associated debt or expensed as incurred.

With respect to the unsecured revolving credit facility amendment, the transaction was deemed to be new debt and therefore, the debt issuance costs incurred during the six months ended June 30, 2022, have been deferred and are being amortized over the term of the associated debt. With respect to the amended 2026 Unsecured Term Loan, the transaction was deemed to be a modification of existing debt and therefore the $0.9 million of debt issuance costs paid to lenders were deferred and are being amortized over the term of the associated debt. The remaining debt issuance costs of $0.1 million were expensed as incurred during the six months ended June 30, 2021.

Debt issuance costs and original issuance discounts are amortized as a component of Interest expense in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income. The following table summarizes debt issuance cost and original issuance discount amortization:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Debt issuance costs and original issuance discount amortization	$	900	$	956	$	1,756	$	1,870

10. Mortgages

The Company's mortgages consist of the following:

	Origination	Maturity
(in thousands, except interest rates)	Date	Date	Interest	June 30,			December 31,
Lender	(Month/Year)	(Month/Year)	Rate	2022			2021
Wilmington Trust National Association	Apr-19	Feb-28	4.92%	$	46,142		$	46,760		(a) (b) (c) (d)
Wilmington Trust National Association	Jun-18	Aug-25	4.36%		19,355			19,557		(a) (b) (c) (e)
PNC Bank	Oct-16	Nov-26	3.62%		16,886			17,094		(b) (c)
T2 Durham I, LLC	Jul-21	Jul-24	Greater of Prime + 1.25% or 5.00%		7,500			7,500		(b) (f)
Aegon	Apr-12	Oct-23	6.38%		5,837			6,249		(b) (g)
Total mortgages					95,720			97,160
Debt issuance costs, net					(267	)		(314	)
Mortgages, net				$	95,453		$	96,846

(a)Non-recourse debt includes the indemnification/guaranty of the Corporation and/or OP pertaining to fraud, environmental claims, insolvency, and other matters.

(b)Debt secured by related rental property and lease rents.

(c)Debt secured by guaranty of the OP.

(d)Mortgage was assumed in April 2019 as part of the acquisition of the related property. The debt was recorded at fair value at the time of assumption.

(e)Mortgage was assumed in June 2018 as part of the acquisition of the related property. The debt was recorded at fair value at the time of assumption.

(f)Mortgage is subject to interest at a daily floating annual rate equal to the Prime Rate plus 1.25%, but no less than 5.00% per annum. At June 30, 2022 and December 31, 2021, the interest rate was 6.00% and 5.00%, respectively.

(g)Mortgage was assumed in April 2012 as part of the acquisition of the related property. The debt was recorded at fair value at the time of the assumption.

At June 30, 2022, investment in rental property of $159.5 million was pledged as collateral against the Company's mortgages.

Estimated future principal payments to be made under the above mortgages and the Company's unsecured credit agreements (see Note 9) at June 30, 2022 are as follows:

(in thousands)
Remainder of 2022	$	1,466
2023		7,582
2024		199,760
2025		20,195
2026		737,500
Thereafter		889,874
	$	1,856,377

Certain of the Company's mortgages provide for prepayment fees and can be terminated under certain events of default as defined under the related agreements. These prepayment fees are not reflected as part of the table above.

16

11. Interest Rate Swaps

Interest rate swaps were entered into with certain financial institutions in order to mitigate the impact of interest rate variability over the term of the related debt agreements. The interest rate swaps are considered cash flow hedges. In order to reduce counterparty concentration risk, the Company has a diversification policy for institutions that serve as swap counterparties. Under these agreements, the Company receives monthly payments from the counterparties on these interest rate swaps equal to the related variable interest rates multiplied by the outstanding notional amounts. Certain interest rate swaps amortize on a monthly basis. In turn, the Company pays the counterparties each month an amount equal to a fixed rate multiplied by the related outstanding notional amounts. The intended net impact of these transactions is that the Company pays a fixed interest rate on its variable-rate borrowings.

The following is a summary of the Company's outstanding interest rate swap agreements:

(in thousands, except interest rates)					June 30, 2022				December 31, 2021
Counterparty	Maturity Date	Fixed Rate			Notional Amount		Fair Value		Notional Amount		Fair Value
Wells Fargo Bank, N.A.	October 2024		2.72	%	$	15,000	$	110	$	15,000	$	(702	)
Capital One, National Association	December 2024		1.58	%		15,000		510		15,000		(241	)
Bank of Montreal	January 2025		1.91	%		25,000		672		25,000		(649	)
Truist Financial Corporation	April 2025		2.20	%		25,000		520		25,000		(905	)
Bank of Montreal	July 2025		2.32	%		25,000		459		25,000		(1,049	)
Truist Financial Corporation	July 2025		1.99	%		25,000		697		25,000		(767	)
Truist Financial Corporation	December 2025		2.30	%		25,000		517		25,000		(1,125	)
Bank of Montreal	January 2026		1.92	%		25,000		833		25,000		(760	)
Bank of Montreal	January 2026		2.05	%		40,000		1,162		40,000		(1,415	)
Capital One, National Association	January 2026		2.08	%		35,000		980		35,000		(1,274	)
Truist Financial Corporation	January 2026		1.93	%		25,000		826		25,000		(768	)
Capital One, National Association	April 2026		2.68	%		15,000		121		15,000		(941	)
Capital One, National Association	July 2026		1.32	%		35,000		2,076		35,000		(205	)
Bank of Montreal	December 2026		2.33	%		10,000		233		10,000		(538	)
Bank of Montreal	December 2026		1.99	%		25,000		941		25,000		(936	)
Toronto-Dominion Bank	March 2027		2.46	%		15,531		660		—		—
Wells Fargo Bank, N.A.	April 2027		2.72	%		25,000		170		25,000		(1,887	)
Bank of Montreal	December 2027		2.37	%		25,000		637		25,000		(1,570	)
Capital One, National Association	December 2027		2.37	%		25,000		616		25,000		(1,575	)
Wells Fargo Bank, N.A.	January 2028		2.37	%		75,000		1,864		75,000		(4,741	)
Bank of Montreal	May 2029		2.09	%		25,000		1,195		25,000		(1,316	)
Regions Bank	May 2029		2.11	%		25,000		1,143		25,000		(1,356	)
Regions Bank	June 2029		2.03	%		25,000		1,265		25,000		(1,222	)
U.S. Bank National Association	June 2029		2.03	%		25,000		1,284		25,000		(1,220	)
U.S. Bank National Association	August 2029		1.35	%		25,000		2,407		25,000		(9	)
Regions Bank	March 2032		2.69	%		15,531		1,103		—		—
U.S. Bank National Association	March 2032		2.70	%		15,531		1,126		—		—
Bank of Montreal	March 2034		2.81	%		31,064		2,435		—		—
					$	717,657	$	26,562	$	640,000	$	(27,171	)

At June 30, 2022, the weighted average fixed rate on all outstanding interest rate swaps was 2.11%.

17

The total amounts recognized, and the location in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income, from converting from variable rates to fixed rates under these agreements were as follows:

	Amount of Gain (Loss)			Reclassification from			Total Interest Expense
	Recognized in			Accumulated Other			Presented in the Condensed
(in thousands)	Accumulated Other			Comprehensive Income (Loss)			Consolidated Statements of
	Comprehensive				Amount of		Income and Comprehensive
For the Three Months Ended June 30,	Income (Loss)			Location	Loss		Income
2022	$	18,772		Interest expense	$	3,122	$	17,888
2021		(2,911	)	Interest expense		4,039		15,430

	Amount of Gain		Reclassification from			Total Interest Expense
	Recognized in		Accumulated Other			Presented in the Condensed
	Accumulated Other		Comprehensive Income (Loss)			Consolidated Statements of
(in thousands)	Comprehensive			Amount of		Income and Comprehensive
For the Six Months Ended June 30,	Income (Loss)		Location	Loss		Income
2022	$	53,733	Interest expense	$	6,987	$	34,784
2021		25,769	Interest expense		8,055		31,538

Amounts related to the interest rate swaps expected to be reclassified out of Accumulated other comprehensive income (loss) to Interest expense during the next twelve months are estimated to be a gain of $4.8 million. The Company is exposed to credit risk in the event of non-performance by the counterparties of the swaps. The Company minimizes the risk exposure by limiting counterparties to only major banks who meet established credit and capital guidelines.

12. Non-Controlling Interests

The following table summarizes OP Units exchanged for shares of common stock:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
OP Units exchanged for shares of common stock		—		1,127		—		1,165
Value of units exchanged	$	—	$	17,859	$	—	$	18,465

On June 16, 2021, the Company achieved the VWAP milestone applicable to tranche 1 of the earnout (see Note 4). As a result, the OP issued 247,899 non-controlling OP Units on June 22, 2021. There were no OP Units issued during the three and six months ended June 30, 2022.

13. Credit Risk Concentrations

The Company maintained bank balances that, at times, exceeded the federally insured limit during the six months ended June 30, 2022. The Company has not experienced losses relating to these deposits and management does not believe that the Company is exposed to any significant credit risk with respect to these amounts.

For the three and six months ended June 30, 2022 and 2021, the Company had no individual tenants or common franchises that accounted for more than 10% of Lease revenues, net.

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14. Equity

The Company established an at-the-market common equity offering program ("ATM Program"), through which it may, from time to time, publicly offer and sell shares of common stock having an aggregate gross sales price of up to $400.0 million. The ATM Program provides for forward sale agreements, enabling the Company to set the price of shares upon pricing the offering, while delaying the issuance of shares and the receipt of the net proceeds. As of June 30, 2022, the Company has issued common stock with an aggregate gross sales price of $234.0 million under the ATM Program and could issue additional common stock with an aggregate sales price of up to $166.0 million under the ATM Program.

The following table presents information about the Company's ATM Program activity:

	For the Three Months Ended		For the Six Months Ended
(in thousands, except per share amounts)	June 30, 2022		June 30, 2022
Number of common shares issued		3,236		9,509
Weighted average sale price per share	$	21.42	$	21.69
Net proceeds	$	68,321	$	202,647
Gross proceeds		69,313		205,857

There was no ATM Program activity during the three and six months ended June 30, 2021.

On June 28, 2021, the Corporation completed its first public follow-on equity offering and issued 11,500,000 shares of Common Stock, including shares issued pursuant to the underwriters' full exercise of their over-allotment option, at $23.00 per share. The net proceeds, after deducting underwriting discounts and commissions of $10.6 million and $0.4 million of other expenses, were $253.5 million. The Company used the net proceeds to repay the remaining $160.6 million principal due under the Company's revolving credit facility. The remaining net proceeds will be used for general business purposes, including acquisitions.

On June 16, 2021, the Company achieved the VWAP milestone applicable to tranche 1 of the earnout (see Note 4). As a result, the Company issued 145,195 shares of common stock on June 22, 2021. There was no such activity during the three and six months ended June 30, 2022.

15. Stock-Based Compensation

Restricted Stock Awards

During the three and six months ended June 30, 2022, the Company awarded 32,868 and 174,913 shares of RSAs, respectively, to officers, employees and non-employee directors, under the Equity Incentive Plan. During the three and six months ended June 30, 2021, the Company issued 1,665 and 201,095 shares of RSAs, respectively. The holder of RSAs is generally entitled at all times on and after the date of issuance of the restricted common shares to exercise the rights of a stockholder of the Company, including the right to vote the shares and the right to receive dividends on the shares. The RSAs vest over a one, three, or four year period from the date of the grant and are subject to the holder's continued service through the applicable vesting dates and in accordance with the terms of the individual award agreements. The weighted average value of awards granted during the three and six months ended June 30, 2022, were $20.23 and $21.39, respectively, which were based on the market price per share of the Company's common stock on the grant date. The weighted average value of awards granted during the three and six months ended June 30, 2021, were $19.76 and $18.66, respectively.

The following table presents information about the Company's RSAs:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Compensation cost (a)	$	877	$	728	$	1,487	$	2,423
Dividends declared on unvested RSAs		106		97		203	201
Fair value of shares vested during the period		—		774		3,209		3,296

(a)Includes $0.1 million compensation cost recognized from RSAs granted to non-employee directors for the three and six months ended June 30, 2022.

(in thousands, except recognition period)	June 30, 2022		December 31, 2021
Unamortized value of RSAs	$	6,794	$	4,715
Weighted average amortization period (in years)		2.5		2.4

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The following table presents information about the Company's RSA activity:

	For the Three Months Ended June 30,
	2022					2021
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share		Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested at beginning of period		367		$	20.33		416		$	19.62
Granted		33			20.23		2			19.76
Vested		—			—		(40	)		19.81
Forfeited		(8	)		19.95		—			—
Unvested at end of period		392			20.33		378			19.60

	For the Six Months Ended June 30,
	2022					2021
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share		Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested at beginning of period		372		$	19.62		341		$	20.50
Granted		175			21.39		201			18.67
Vested		(146	)		19.80		(164	)		20.15
Forfeited		(9	)		20.06		—			—
Unvested at end of period		392			20.33		378			19.60

Performance-based Restricted Stock Units

The Company issued target grants of 121,883 and 132,189 PRSUs, during the six months ended June 30, 2022 and 2021, respectively, under the Equity Incentive Plan to the officers of the Company. There were no PRSUs granted during the three months ended June 30, 2022 and 2021, respectively. The awards are non-vested restricted stock units where the vesting percentages and the ultimate number of units vesting will be measured 50% based on the relative total shareholder return ("rTSR") of the Company's common stock as compared to the rTSR of peer companies, as identified in the grant agreements, over a three-year period, and 50% based on the rTSR of the Company's common stock as compared to the rTSR of the MSCI US REIT Index over a three year measurement period. Vesting percentages range from 0% to 200% with a target of 100%. rTSR means the percentage appreciation in the fair market value of one share over the three year measurement period beginning on the date of grant, assuming the reinvestment of dividends on the ex-dividend date. The target number of units is based on achieving a rTSR equal to the 55th percentile of the peer companies and MSCI US REIT Index. Dividends accrue during the measurement period and will be paid on the PRSUs ultimately earned at the end of the measurement period in either cash or common stock, at the direction of the Board's Compensation Committee. The grant date fair value of the PRSUs was measured using a Monte Carlo simulation model based on assumptions including share price volatility.

The following tables present information about the Company's PRSUs:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands, except recognition period)	2022		2021		2022		2021
Compensation cost	$	504	$	223	$	823	$	297

	June 30, 2022		December 31, 2021
Unamortized value of PRSUs	$	4,490	$	1,931
Weighted average amortization period (in years)		2.3		2.2

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The following table presents information about the Company's PRSU activity:

	For the Three Months Ended June 30,
	2022					2021
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share		Number of Shares		Weighted Average Grant Date Fair Value per Share
Unvested at beginning of period		232		$	26.25		110	$	24.40
Granted		—			—		—		—
Vested		—			—		—		—
Forfeited		(1	)		27.93		—		—
Unvested at end of period		231			26.25		110		24.40

	For the Six Months Ended June 30,
	2022					2021
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share		Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested at beginning of period		110		$	24.40		—		$	—
Granted		122			27.93		132			24.40
Vested		—			—		—			—
Forfeited		(1	)		27.93		(22	)		24.40
Unvested at end of period		231			26.25		110			24.40

16. Earnings per Share

The following table summarizes the components used in the calculation of basic and diluted earnings per share ("EPS"):

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(in thousands, except per share amounts)	2022			2021			2022			2021
Basic earnings:
Net earnings attributable to Broadstone Net Lease, Inc. common    shareholders	$	33,516		$	21,214		$	60,274		$	43,437
Less: earnings allocated to unvested restricted shares		(105	)		(97	)		(202	)		(201	)
Net earnings used to compute basic earnings per common share	$	33,411		$	21,117		$	60,072		$	43,236
Diluted earnings:
Net earnings used to compute basic earnings per share	$	33,411		$	21,117		$	60,072		$	43,236
Net earnings attributable to non-controlling interests		2,036			1,606			3,719			3,343
Net earnings used to compute diluted earnings per common share	$	35,447		$	22,723		$	63,791		$	46,579
Weighted average number of common shares outstanding		169,933			146,506			167,072			146,089
Less: weighted average unvested restricted shares (a)		(378	)		(387	)		(374	)		(361	)
Weighted average number of common shares outstanding used in    basic earnings per common share		169,555			146,119			166,698			145,728
Effects of restricted stock units (b)		378			219			325			147
Effects of convertible membership units (c)		10,323			11,092			10,323			11,240
Weighted average number of common shares outstanding used in    diluted earnings per common share		180,256			157,430			177,346			157,115
Basic earnings per share	$	0.20		$	0.14		$	0.36		$	0.30
Diluted earnings per share	$	0.20		$	0.14		$	0.36		$	0.30

(a)Represents the weighted average effects of 391,187 and 378,516 unvested restricted shares of common stock as of June 30, 2022 and 2021, respectively, which will be excluded from the computation of earnings per share until they vest. The shares of restricted common stock were not included in the calculation of diluted earnings per share, as the effect of doing so would have been anti-dilutive.

(b)Represents the weighted average effects of shares of common stock to be issued as though the end of the period were the end of the performance period (see Note 15).

(c)Represents the weighted average effects of 10,323,206 and 10,481,872 OP Units outstanding at June 30, 2022 and 2021, respectively. OP Units are included in the diluted earnings per share calculation. However, because such OP Units would also require that the share of the net income attributable to such OP units also be added back to net income, there is no effect to EPS.

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17. Supplemental Cash Flow Disclosures

Cash paid for interest was $32.1 million and $30.0 million for the six months ended June 30, 2022 and 2021, respectively. Cash paid for income taxes was $1.0 million and $0.7 million for the six months ended June 30, 2022 and 2021, respectively.

The following are non-cash transactions and have been excluded from the accompanying Condensed Consolidated Statements of Cash Flows:

•During the six months ended June 30, 2021, the Company converted 1,164,461 OP Units valued at $18.5 million to 1,164,461 shares of common stock. There were no OP Units converted to common stock during the six months ended June 30, 2022.

•At June 30, 2022 and 2021, dividend amounts declared and accrued but not yet paid amounted to $49.5 million and $43.2 million, respectively.

•At June 30, 2022 and 2021, the Company adjusted the carrying value of Non-controlling interests to reflect their share of the book value of the OP by $2.9 million and $7.9 million, respectively, with the reallocation recorded as an offset to Additional paid-in capital and Accumulated other comprehensive income (loss).

18. Commitments and Contingencies

Litigation

From time to time, the Company is a party to various litigation matters incidental to the conduct of the Company's business. While the resolution of such matters cannot be predicted with certainty, based on currently available information, the Company does not believe that the final outcome of any of these matters will have a material effect on its consolidated financial position, results of operations, or liquidity.

Property and Acquisition Related

In connection with ownership and operation of real estate, the Company may potentially be liable for cost and damages related to environmental matters. The Company is not aware of any non-compliance, liability, claim, or other environmental condition that would have a material effect on its consolidated financial position, results of operations, or liquidity.

The Company had a commitment to fund a building expansion project related to a previous acquisition for a total of $17.4 million, in exchange for an increase in base rent. In June 2022, the Company fulfilled this commitment and the base rent increased accordingly.

The Company is a party to three separate tax protection agreements with the contributing members of three distinct UPREIT transactions and to the Founding Owners' Tax Protection Agreement in connection with the internalization. The tax protection agreements require the Company to indemnify the beneficiaries in the event of a sale, exchange, transfer, or other disposal of the contributed property, and in the case of the Founding Owners' Tax Protection Agreement, the entire Company, in a taxable transaction that would cause such beneficiaries to recognize a gain that is protected under the agreements, subject to certain exceptions. The Company is required to allocate an amount of nonrecourse liabilities to each beneficiary that is at least equal to the minimum liability amount, as contained in the agreements. The minimum liability amount and the associated allocation of nonrecourse liabilities are calculated in accordance with applicable tax regulations, are completed at the OP level, and do not represent GAAP accounting. Therefore, there is no impact to the Condensed Consolidated Financial Statements. Based on values as of June 30, 2022, taxable sales of the applicable properties would trigger liability under the agreements of approximately $22.3 million. Based on information available, the Company does not believe that the events resulting in damages as detailed above have occurred or are likely to occur in the foreseeable future.

In the normal course of business, the Company enters into various types of commitments to purchase real estate properties. These commitments are generally subject to the Company's customary due diligence process and, accordingly, a number of specific conditions must be met before the Company is obligated to purchase the properties.

19. Subsequent Events

On July 15, 2022, the Company paid distributions totaling $49.2 million.

On July 28, 2022, the Board of Directors declared a quarterly distribution of $0.270 per share on the Company's common stock and OP Units for the third quarter of 2022, which will be payable on or before October 14, 2022 to stockholders and OP unitholders of record as of September 30, 2022.

Subsequent to June 30, 2022, the Company continued to expand its operations through the acquisition of additional rental property and associated intangible assets and liabilities. The Company acquired approximately $80.2 million of rental property and associated intangible assets and liabilities (see Note 5).

22

On August 1, 2022, the Company entered into two new unsecured bank term loans, including a $200.0 million, five year term loan that matures in 2027 (the "2027 Unsecured Term Loan"), and a $300.0 million, seven year term loan that matures in 2029 (the "2029 Unsecured Term Loan"). Borrowings on the new term loans bear interest at variable rates based on the Secured Overnight Financing Rate plus a margin based on the Company's credit rating, ranging between 0.80% and 1.60% per annum for the 2027 Unsecured Term Loan, and 1.15% and 2.20% per annum for the 2029 Unsecured Term Loan. The applicable margin is 0.95% and 1.25% for the 2027 Unsecured Term Loan and 2029 Unsecured Term Loan, respectively. Proceeds from the loans were used to repay in full the $190.0 million unsecured term loan set to mature in 2024, including accrued interest, and a portion of the outstanding balance on the unsecured revolving credit facility.

Subsequent to June 30, 2022, the Company paid down $318.0 million, and borrowed $94.0 million on the unsecured revolving credit facility, the proceeds of which were used to fund acquisitions and for other general corporate purposes.

Through August 3, 2022, the Company issued 962,200 shares of common stock at a weighted average sale price of $21.44 per share under the ATM Program. The net proceeds, after deducting $0.3 million of commissions and other offering costs, were $20.3 million.

23

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Except where the context suggests otherwise, as used in this Quarterly Report on Form 10-Q, the terms "BNL," "we," "us," "our," and "our company" refer to Broadstone Net Lease, Inc., a Maryland corporation incorporated on October 18, 2007, and, as required by context, Broadstone Net Lease, LLC, a New York limited liability company, which we refer to as the or our "OP," and to their respective subsidiaries.

The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to help the reader understand our results of operations and financial condition. This MD&A is provided as a supplement to, and should be read in conjunction with, our Condensed Consolidated Financial Statements and the accompanying Notes to the Condensed Consolidated Financial Statements appearing elsewhere in this Quarterly Report on Form 10-Q.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements, which reflect our current views regarding our business, financial performance, growth prospects and strategies, market opportunities, and market trends, that are intended to be made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). 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 included in this Quarterly Report on Form 10-Q 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.

Important factors that could cause results to differ materially from the forward-looking statements are described in Item 1. "Business," Item 1A. "Risk Factors," and Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2021 Annual Report on Form 10-K, as filed with the SEC on February 23, 2022. The "Risk Factors" of our 2021 Annual Report should not be construed as exhaustive and should be read in conjunction with other cautionary statements included elsewhere in this Quarterly Report on Form 10-Q.

You are cautioned not to place undue reliance on any forward-looking statements included in this Quarterly Report on Form 10-Q. All forward-looking statements are made as of the date of this Quarterly Report on Form 10-Q and the risk that actual results, performance, and achievements will differ materially from the expectations expressed in or referenced by this Quarterly Report on Form 10-Q 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.

Regulation FD Disclosures

We use any of the following to comply with our disclosure obligations under Regulation FD: SEC filings, press releases, public conference calls, or our website. We routinely post important information on our website at www.Broadstone.com, including information that may be deemed material. We encourage our shareholders and others interested in our company to monitor these distribution channels for material disclosures. Our website address is included in this Quarterly Report as a textual reference only and the information on the website is not incorporated by reference in this Quarterly Report.

Explanatory Note and Certain Defined Terms

Unless the context otherwise requires, the following terms and phrases are used throughout this MD&A as described below:

•"annualized base rent" or "ABR" means the annualized contractual cash rent due for the last month of the reporting period, excluding the impacts of short-term rent deferrals, abatements, free rent, or discounted rent periods, 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 month;

•"cash capitalization 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 excluding capitalized acquisitions costs;

24

•"CPI" means the Consumer Price Index for All Urban Consumers (CPI-U): U.S. City Average, All Items, as published by the U.S. Bureau of Labor Statistics, or other similar index which is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services;

•"occupancy" or a specified percentage of our portfolio that is "occupied" or "leased" means as of a specified date the quotient of (1) the total rentable 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; and

•"Revolving Credit Facility" means our $1.0 billion unsecured revolving credit facility, dated January 28, 2022, with J.P. Morgan Chase Bank, N.A. and the other lenders party thereto.

Overview

We are an internally-managed 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 in 2007, we have selectively invested in net leased assets in the industrial, healthcare, restaurant, retail, and office property types. During the six months ended June 30, 2022, we invested $392.4 million, excluding capitalized acquisition costs, in 42 properties at a weighted average initial cash capitalization rate of 6.1%. The acquisitions included properties in industrial (47.2% of the total volume acquired during the six months ended June 30, 2022, based on ABR), restaurant (25.4%), retail (23.8%), and healthcare (3.6%) asset classes located across 21 U.S. states and four Canadian provinces with a weighted average initial lease term and minimum annual rent increases of 19.6 years and 1.8%, respectively. As of June 30, 2022, our portfolio has grown to 764 properties, with 757 properties located in 44 U.S. states and seven properties located in four Canadian provinces.

We focus on investing in real estate that is operated by creditworthy single tenants in industries characterized by positive business drivers and trends. We target properties that are an integral part of the tenants' businesses and are therefore 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.

-Diversified Portfolio. As of June 30, 2022, our portfolio comprised approximately 34.4 million rentable square feet of operational space, and was highly diversified based on property type, geography, tenant, and industry, and is cross-diversified within each (e.g., property-type diversification within a geographic concentration):

•Property Type: We are focused primarily on industrial, healthcare, restaurant, retail, and office property types based on our extensive experience in and conviction around these sectors. Within these sectors, we have meaningful concentrations in manufacturing, distribution and warehouse, casual dining, clinical, quick service restaurants, food processing, general merchandise, and flex/research and development.

•Geographic Diversification: Our properties are located in 44 U.S. states and four Canadian provinces, with no single geographic concentration exceeding 10.4% of our ABR.

•Tenant and Industry Diversification: Our properties are occupied by approximately 213 different commercial tenants who operate 203 different brands that are diversified across 57 differing industries, with no single tenant accounting for more than 2.0% of our ABR.

-Strong In-Place Leases with Significant Remaining Lease Term. As of June 30, 2022, our portfolio was approximately 99.8% leased with an ABR weighted average remaining lease term of approximately 10.6 years, excluding renewal options.

-Standard Contractual Base Rent Escalation. Approximately 97.3% of our leases have contractual rent escalations, with an ABR weighted average minimum increase of 2.0%.

-Extensive Tenant Financial Reporting. Approximately 94.0% of our tenants, based on ABR, provide financial reporting, of which 85.0% are required to provide us with specified financial information on a periodic basis, and an additional 9.0% of our tenants report financial statements publicly, either through SEC filings or otherwise.

25

Real Estate Portfolio Information

The following charts summarize our portfolio diversification by property type, tenant, brand, industry, and geographic location as of June 30, 2022. The percentages below are calculated based on our ABR of $360.0 million as of June 30, 2022.

Diversification by Property Type

 

26

Property Type	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
Industrial
Manufacturing		69	$	55,116		15.3	%		10,046		29.2	%
Distribution & Warehouse		47		51,375		14.3	%		9,526		27.7	%
Food Processing		17		24,200		6.7	%		2,730		7.9	%
Flex and R&D		7		17,296		4.8	%		1,457		4.3	%
Cold Storage		4		12,724		3.5	%		933		2.7	%
Industrial Services		22		10,765		3.0	%		587		1.7	%
Industrial Total		166		171,476		47.6	%		25,279		73.5	%
Healthcare
Clinical		52		26,770		7.4	%		1,091		3.2	%
Healthcare Services		28		12,528		3.5	%		463		1.3	%
Animal Health Services		27		10,437		2.9	%		405		1.2	%
Surgical		12		10,274		2.9	%		329		0.9	%
Life Science		9		7,722		2.1	%		549		1.6	%
Untenanted		1		—		—			18		0.1	%
Healthcare Total		129		67,731		18.8	%		2,855		8.3	%
Restaurant
Casual Dining		101		26,738		7.4	%		675		2.0	%
Quick Service Restaurants		146		24,787		6.9	%		499		1.4	%
Restaurant Total		247		51,525		14.3	%		1,174		3.4	%
Retail
General Merchandise		126		23,924		6.6	%		1,802		5.2	%
Automotive		66		12,196		3.4	%		771		2.3	%
Home Furnishings		13		7,030		2.0	%		797		2.3	%
Untenanted		1		—		—			34		0.1	%
Retail Total		206		43,150		12.0	%		3,404		9.9	%
Office
Corporate Headquarters		7		10,429		2.9	%		679		2.0	%
Strategic Operations		5		9,806		2.7	%		615		1.8	%
Call Center		4		5,902		1.7	%		391		1.1	%
Office Total		16		26,137		7.3	%		1,685		4.9	%
Total		764	$	360,019		100.0	%		34,397		100.0	%

27

Diversification by Tenant

Tenant	Property Type	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
Jack's Family Restaurants LP*	Quick Service Restaurants		43	$	7,166		2.0	%		147		0.4	%
Joseph T. Ryerson & Son, Inc	Distribution & Warehouse		11		6,395		1.8	%		1,537		4.5	%
Red Lobster Hospitality & Red Lobster    Restaurants LLC*	Casual Dining		20		6,361		1.8	%		166		0.5	%
J. Alexander's, LLC*	Casual Dining		16		6,025		1.7	%		131		0.4	%
Axcelis Technologies, Inc.	Flex and R&D		1		5,991		1.6	%		417		1.2	%
Hensley & Company*	Distribution & Warehouse		3		5,871		1.6	%		577		1.7	%
Dollar General Corporation	General Merchandise		57		5,636		1.5	%		531		1.5	%
BluePearl Holdings, LLC**	Animal Health Services		13		5,451		1.5	%		165		0.5	%
Tractor Supply Company	General Merchandise		21		5,279		1.5	%		417		1.2	%
Outback Steakhouse of Florida LLC*1	Casual Dining		22		5,278		1.5	%		140		0.4	%
Total Top 10 Tenants			207		59,453		16.5	%		4,228		12.3	%
AHF, LLC*	Distribution & Warehouse/ Manufacturing		5		5,142		1.4	%		982		2.8	%
Krispy Kreme Doughnut Corporation	Quick Service Restaurants/ Food Processing		27		5,034		1.4	%		156		0.4	%
Big Tex Trailer Manufacturing, Inc.*	Automotive/Distribution & Warehouse/Manufacturing/ Corporate Headquarters		17		4,957		1.4	%		1,302		3.8	%
Siemens Medical Solutions USA, Inc. &    Siemens Corporation	Manufacturing/Flex and R&D		2		4,936		1.4	%		545		1.6	%
Carvana, LLC*	Industrial Services		2		4,510		1.3	%		230		0.7	%
Santa Cruz Valley Hospital	Healthcare Facilities		1		4,500		1.2	%		148		0.4	%
Nestle' Dreyer's Ice Cream Company	Cold Storage		1		4,476		1.2	%		310		0.9	%
Arkansas Surgical Hospital	Surgical		1		4,366		1.2	%		129		0.4	%
American Signature, Inc.	Home Furnishings		6		4,224		1.2	%		474		1.4	%
Fresh Express Incorporated	Food Processing		1		4,144		1.2	%		335		1.0	%
Total Top 20 Tenants			270	$	105,742		29.4	%		8,839		25.7	%

1 Tenant's properties include 20 Outback Steakhouse restaurants and two Carrabba's Italian Grill restaurants.

* Subject to a master lease.

** Includes properties leased by multiple tenants, some, not all, of which are subject to master leases.

Diversification by Brand

Brand	Property Type	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
Jack's Family Restaurants*	Quick Service Restaurants		43	$	7,166		2.0	%		147		0.4	%
Ryerson	Distribution & Warehouse		11		6,395		1.8	%		1,537		4.5	%
Red Lobster*	Casual Dining		20		6,361		1.8	%		166		0.5	%
Axcelis	Flex and R&D		1		5,991		1.6	%		417		1.2	%
Hensley*	Distribution & Warehouse		3		5,871		1.6	%		577		1.7	%
Dollar General	General Merchandise		57		5,636		1.5	%		531		1.5	%
BluePearl Veterinary Partners**	Animal Health Services		13		5,451		1.5	%		165		0.5	%
Bob Evans Farms*1	Casual Dining/Food Processing		21		5,352		1.5	%		281		0.9	%
Tractor Supply Co.	General Merchandise		21		5,279		1.5	%		417		1.2	%
AHF Products*	Distribution & Warehouse/ Manufacturing		5		5,142		1.4	%		982		2.8	%
Total Top 10 Brands			195		58,644		16.2	%		5,220		15.2	%
Krispy Kreme	Quick Service Restaurants/ Food Processing		27		5,034		1.4	%		156		0.4	%
Big Tex Trailers*	Automotive/Distribution & Warehouse/Manufacturing/ Corporate Headquarters		17		4,957		1.4	%		1,302		3.8	%
Siemens	Manufacturing/Flex and R&D		2		4,936		1.4	%		545		1.6	%
Outback Steakhouse*	Casual Dining		20		4,566		1.3	%		126		0.4	%
Carvana*	Industrial Services		2		4,510		1.3	%		230		0.7	%
Santa Cruz Valley Hospital	Healthcare Facilities		1		4,500		1.2	%		148		0.4	%
Nestle'	Cold Storage		1		4,476		1.2	%		310		0.9	%
Arkansas Surgical Hospital	Surgical		1		4,366		1.2	%		129		0.4	%
Wendy's**	Quick Service Restaurants		29		4,320		1.2	%		83		0.2	%
Value City Furniture	Home Furnishings		6		4,224		1.2	%		474		1.4	%
Total Top 20 Brands			301	$	104,533		29.0	%		8,723		25.4	%

1 Brand includes one BEF Foods, Inc. property and 20 Bob Evans Restaurants, LLC properties.

* Subject to a master lease.

** Includes properties leased by multiple tenants, some, not all, of which are subject to master leases.

28

Diversification by Industry

Industry	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
Healthcare Facilities		102	$	53,633		14.9	%		2,029		5.9	%
Restaurant		250		52,296		14.5	%		1,217		3.5	%
Packaged Foods & Meats		11		17,698		4.9	%		1,914		5.6	%
Distributors		27		15,699		4.4	%		2,695		7.8	%
Food Distributors		8		14,678		4.1	%		1,786		5.2	%
Specialty Stores		31		13,930		3.9	%		1,338		3.9	%
Auto Parts & Equipment		39		12,672		3.5	%		2,387		6.9	%
Home Furnishings Retail		18		12,459		3.5	%		1,858		5.4	%
Specialized Consumer Services		47		12,218		3.4	%		722		2.1	%
Metal & Glass Containers		8		9,898		2.7	%		2,206		6.4	%
Healthcare Services		18		9,213		2.6	%		515		1.5	%
General Merchandise Stores		90		9,011		2.5	%		817		2.4	%
Aerospace & Defense		7		8,694		2.4	%		952		2.8	%
Internet & Direct Marketing Retail		3		6,881		1.9	%		447		1.3	%
Electronic Components		2		6,806		1.9	%		466		1.4	%
Other (42 industries)		101		104,233		28.9	%		12,996		37.7	%
Untenanted properties		2		—		—			52		0.2	%
Total		764	$	360,019		100.0	%		34,397		100.0	%

29

Diversification by Geographic Location

 

State / Province	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio			State / Province	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
TX		70	$	37,549		10.4	%		3,636		10.6	%	LA		4		3,401		0.9	%		194		0.6	%
IL		27		21,566		6.0	%		2,002		5.8	%	NE		6		3,037		0.8	%		509		1.5	%
WI		35		20,744		5.8	%		2,163		6.3	%	MD		4		2,987		0.8	%		293		0.9	%
MI		49		17,130		4.8	%		1,633		4.7	%	NM		8		2,815		0.8	%		96		0.3	%
FL		42		16,122		4.5	%		844		2.5	%	MS		8		2,774		0.8	%		334		1.0	%
OH		38		15,786		4.4	%		1,416		4.1	%	IA		4		2,754		0.8	%		622		1.8	%
CA		10		15,622		4.3	%		1,493		4.3	%	SC		13		2,494		0.7	%		308		0.9	%
IN		30		15,035		4.2	%		1,858		5.4	%	WV		16		2,486		0.7	%		109		0.3	%
MN		21		14,600		4.0	%		2,285		6.6	%	CO		4		2,459		0.7	%		126		0.4	%
TN		49		13,995		3.9	%		866		2.5	%	UT		3		2,379		0.7	%		280		0.8	%
NC		36		13,742		3.8	%		1,425		4.1	%	CT		2		1,758		0.5	%		55		0.2	%
AZ		9		13,213		3.7	%		909		2.6	%	MT		7		1,563		0.4	%		43		0.1	%
AL		53		11,950		3.3	%		873		2.5	%	NV		2		1,336		0.4	%		81		0.2	%
GA		33		11,356		3.1	%		1,576		4.6	%	DE		4		1,154		0.3	%		133		0.4	%
NY		26		10,718		3.0	%		680		2.0	%	ND		2		943		0.3	%		28		0.1	%
MA		5		10,456		2.9	%		1,026		3.0	%	VT		2		420		0.1	%		24		0.1	%
AR		12		8,767		2.4	%		544		1.6	%	WY		1		307		0.1	%		21		0.1	%
OK		21		7,597		2.1	%		977		2.8	%	OR		1		136		0.0	%		9		0.1	%
KY		24		7,486		2.1	%		946		2.7	%	SD		1		81		0.0	%		9		0.0	%
PA		17		7,080		2.0	%		1,037		3.0	%	Total US		757	$	351,970		97.8	%		33,967		98.8	%
MO		12		6,064		1.7	%		1,136		3.3	%	BC		2	$	4,633		1.3	%		253		0.7	%
KS		11		5,489		1.5	%		648		1.9	%	ON		3		2,085		0.6	%		101		0.3	%
VA		17		5,451		1.5	%		204		0.6	%	AB		1		981		0.2	%		51		0.1	%
NJ		3		4,904		1.4	%		366		1.1	%	MB		1		350		0.1	%		25		0.1	%
WA		15		4,264		1.2	%		150		0.4	%	Total Canada		7	$	8,049		2.2	%		430		1.2	%
													Grand Total		764	$	360,019		100.0	%		34,397		100.0	%

30

Our Leases

We typically lease our properties pursuant to long-term net leases that often have renewal options. Substantially all of our leases are net, meaning our tenants are generally obligated to pay all expenses associated with the leased property (such as real estate taxes, insurance, maintenance, repairs, and capital costs).

As of June 30, 2022, approximately 99.8% of our portfolio, representing all but two of our properties, was subject to a lease. Because substantially all of our properties are leased under long-term leases, we are not currently required to perform significant ongoing leasing activities on our properties.

As of June 30, 2022, the ABR weighted average remaining term of our leases was approximately 10.6 years. Less than 5% of the properties in our portfolio are subject to leases without at least one renewal option. Approximately 67.4% of our ABR was derived from leases that will expire in 2030 and after, and no more than 6.5% of our ABR was derived from leases that expire in any single year prior to 2030. The following chart sets forth our lease expirations based upon the terms of the leases in place as of June 30, 2022.

 

31

The following table presents certain information based on lease expirations by year. Amounts are in thousands, except for number of properties.

Expiration Year	# Properties		# Leases		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
2022		1		2	$	1,566		0.4	%		46		0.1	%
2023		7		8		5,412		1.5	%		538		1.6	%
2024		11		11		14,036		3.9	%		1,689		4.9	%
2025		20		23		8,527		2.4	%		698		2.0	%
2026		35		32		19,235		5.4	%		1,413		4.1	%
2027		29		28		23,531		6.5	%		2,019		5.9	%
2028		33		31		23,061		6.4	%		2,291		6.7	%
2029		71		39		22,061		6.1	%		2,711		7.9	%
2030		101		57		53,636		14.9	%		5,110		14.8	%
2031		33		28		8,547		2.4	%		805		2.3	%
2032		59		44		30,701		8.5	%		3,437		10.0	%
2033		49		23		18,360		5.1	%		1,575		4.6	%
2034		33		22		6,240		1.7	%		409		1.2	%
2035		17		13		12,494		3.5	%		1,927		5.6	%
2036		86		21		25,732		7.2	%		2,854		8.3	%
2037		24		9		17,762		4.9	%		1,369		4.0	%
2038		33		29		6,842		1.9	%		306		0.9	%
2039		11		6		6,860		1.9	%		803		2.3	%
2040		31		5		5,744		1.6	%		312		0.9	%
2041		40		8		19,850		5.5	%		1,731		5.0	%
Thereafter		38		9		29,822		8.3	%		2,302		6.7	%
Untenanted properties		2		—		—		—			52		0.2	%
Total		764		448	$	360,019		100.0	%		34,397		100.0	%

32

Substantially all of our leases provide for periodic contractual rent escalations. As of June 30, 2022, leases contributing 97.3% of our ABR provided for increases in future ABR, generally ranging from 1.5% to 2.5% annually, with an ABR weighted average annual minimum increase equal to 2.0% of base rent. Generally, our rent escalators increase rent on specified dates by a fixed percentage. Our escalations provide us with a source of organic revenue growth and a measure of inflation protection. Additional information on lease escalation frequency and weighted average annual escalation rates as of June 30, 2022 is displayed below:

Lease Escalation Frequency	% of ABR			Weighted Average Annual Minimum Increase (a)
Annually		78.2	%		2.3	%
Every 2 years		0.1	%		1.8	%
Every 3 years		2.9	%		3.0	%
Every 4 years		1.1	%		2.4	%
Every 5 years		8.0	%		1.8	%
Other escalation frequencies		7.0	%		1.6	%
Flat		2.7	%		—
Total/Weighted Average (b)		100.0	%		2.0	%

(a)Represents the ABR weighted average annual minimum increase of the entire portfolio as if all escalations occurred annually. For leases where rent escalates by the greater of a stated fixed percentage or the change in CPI, we have assumed an escalation equal to the stated fixed percentage in the lease. As of June 30, 2022, leases contributing 8.0% of our ABR provide for rent increases equal to the lesser of a stated fixed percentage or the change in CPI. As any future increase in CPI is unknowable at this time, we have not included an increase in the rent pursuant to these leases in the weighted average annual minimum increase presented.

(b)Weighted by ABR.

The escalation provisions of our leases (by percentage of ABR) as of June 30, 2022, are displayed in the following chart:

 

33

Results of Operations

The following discussion includes the results of our operations for the periods presented.

Three Months Ended June 30, 2022 Compared to Three Months Ended March 31, 2022

Lease Revenues, net

	For the Three Months Ended
	June 30,			March 31,			Increase/(Decrease)
(in thousands)	2022			2022			$			%
Contractual rental amounts billed for operating leases	$	87,505		$	84,396		$	3,109		3.7	%
Adjustment to recognize contractual operating lease    billings on a straight-line basis		5,090			5,021			69		1.4	%
Net write-offs of accrued rental income		—			(1,326	)		1,326		(100.0	)%
Variable rental amounts earned		291			186			105		56.5	%
Earned income from direct financing leases		721			723			(2	)	(0.3	)%
Interest income from sales-type leases		15			14			1		7.1	%
Operating expenses billed to tenants		4,263			4,735			(472	)	(10.0	)%
Other income from real estate transactions		134			42			92		>100.0	%
Adjustment to revenue recognized for uncollectible    rental amounts billed, net		(6	)		50			(56	)	<(100.0	)%
Total Lease revenues, net	$	98,013		$	93,841		$	4,172		4.4	%

The increase in Lease revenues, net was primarily attributable to growth in our real estate portfolio through property acquisitions. As we acquire properties throughout the period, the full benefit of lease revenues from newly acquired properties will not be realized in the quarter of acquisition. During the first quarter of 2022, we invested $210.0 million, excluding capitalized acquisition costs, in 27 properties at a weighted average initial cash capitalization rate of 5.7%. Most of these acquisitions closed during the month of March 2022, and therefore did not materially contribute to Lease revenues, net for the three months ended March 31, 2022. The increase was also partially attributable to our $182.4 million of acquisitions during the second quarter of 2022 at a 6.4% weighted average initial cash capitalization rate, the full benefit of which we anticipate will be realized during the third quarter of 2022. Additionally, we did not record any write-offs of accrued rental income during the three months ended June 30, 2022.

34

Operating Expenses

	For the Three Months Ended
	June 30,		March 31,		Increase/(Decrease)
(in thousands)	2022		2022		$			%
Operating expenses
Depreciation and amortization	$	35,511	$	34,290	$	1,221			3.6	%
Property and operating expense		4,696		5,044		(348	)		(6.9	)%
General and administrative		9,288		8,828		460			5.2	%
Provision for impairment of investment in rental properties		1,380		—		1,380			100.0	%
Total operating expenses	$	50,875	$	48,162	$	2,713			5.6	%

Depreciation and amortization

The increase in depreciation and amortization for the three months ended June 30, 2022 was primarily due to growth in our real estate portfolio.

Provision for impairment of investment in rental properties

During the three months ended June 30, 2022 we recognized $1.4 million of impairment on our investments in rental properties due to change in our long-term hold strategy for a single property, compared to no impairment recognized during the three months ended March 31, 2022. The following table presents the impairment charges for the respective periods:

	For the Three Months Ended
	June 30,		March 31,
(in thousands, except number of properties)	2022		2022
Number of properties		1		—
Carrying value prior to impairment charge	$	3,674	$	—
Fair value		2,294		—
Impairment charge	$	1,380	$	—

The timing and amount of impairment fluctuates from period to period depending on the specific facts and circumstances.

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Other income (expenses)

	For the Three Months Ended
	June 30,				March 31,				Increase/(Decrease)
(in thousands)	2022				2022				$				%
Other income (expenses)
Interest expense	$	(17,888		)	$	(16,896		)	$	992			5.9	%
Gain on sale of real estate			4,071				1,196				2,875		>100.0	%
Income taxes		(401		)		(412		)		(11		)	(2.7	)%
Other income (expenses)			2,632			(1,126		)		(3,758		)	>100.0	%

Interest expense

The increase in interest expense reflects an increase in our weighted average cost of borrowings combined with increased average outstanding borrowings during the three months ended June 30, 2022 compared to during the three months ended March 31, 2022. During the second quarter we increased total outstanding borrowings by $53.8 million to partially fund our acquisitions. Of our $1.9 billion of total outstanding indebtedness, approximately $200.5 million, or 10.8% is variable, and therefore subject to the impact of fluctuations in interest rates.

Gain on sale of real estate

Our recognition of a gain or loss on the sale of real estate varies from transaction to transaction based on fluctuations in asset prices and demand in the real estate market. During the three months ended June 30, 2022, we recognized a gain of $4.1 million on the sale of three properties, compared to a gain of $1.2 million on the sale of one property during the three months ended March 31, 2022. Our proactive asset management strategy includes determining to sell any of our properties where we believe the risk profile has changed and become misaligned with our then current risk-adjusted return objectives.

Other income (expenses)

The change in other income (expenses) during the three months ended June 30, 2022 was primarily due to $2.6 million of an unrealized foreign exchange gain recognized on the quarterly remeasurement of our $100 million CAD revolver borrowings, compared to a $1.1 million unrealized foreign exchange loss recognized during the three months ended March 31, 2022.

Net income and Net earnings per diluted share

	For the Three Months Ended
	June 30,		March 31,		Increase/(Decrease)
(in thousands, except per share data)	2022		2022		$		%
Net income	$	35,552	$	28,441	$	7,111		25.0	%
Net earnings per diluted share		0.20		0.16		0.04		25.0	%

The increase in net income is primarily attributable to a $4.2 million increase in lease revenue associated with growth in our real estate portfolio, a $3.8 million increase in unrealized foreign exchange gains, and a $2.9 million increase in gain on sale of real estate, partially offset by a $1.4 million increase in impairment of investment in rental properties, a $1.2 million increase in depreciation and amortization, and a $1.0 million increase in interest expense.

GAAP net income includes items such as gain or loss on sale of real estate and provisions for impairment, among others, which can vary from quarter to quarter and impact period-over-period comparisons.

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Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021

Lease Revenues, net

	For the Six Months Ended
	June 30,						Increase/(Decrease)
(in thousands)	2022			2021			$			%
Contractual rental amounts billed for operating leases	$	171,901		$	148,256		$	23,645		15.9	%
Adjustment to recognize contractual operating lease    billings on a straight-line basis		10,111			9,533			578		6.1	%
Net write-offs of accrued rental income		(1,326	)		(442	)		(884	)	>100.0	%
Variable rental amounts earned		477			205			272		>100.0	%
Earned income from direct financing leases		1,444			1,458			(14	)	(1.0	)%
Interest income from sales-type leases		29			29			—		—	%
Operating expenses billed to tenants		8,998			8,584			414		4.8	%
Other income from real estate transactions		176			33			143		>100.0	%
Adjustment to revenue recognized for uncollectible    rental amounts billed, net		44			(199	)		243		>100.0	%
Total Lease revenues, net	$	191,854		$	167,457		$	24,397		14.6	%

The increase in Lease revenues, net was primarily attributable to growth in our real estate portfolio through property acquisitions closed since June 30, 2021. During the twelve months ended June 30, 2022, we invested $765.8 million, excluding capitalized acquisition costs, in 96 properties at a weighted average initial cash capitalization rate of 6.2%.

Operating Expenses

	For the Six Months Ended
	June 30,				Increase/(Decrease)
(in thousands)	2022		2021		$			%
Operating expenses
Depreciation and amortization	$	69,801	$	61,938	$	7,863			12.7	%
Property and operating expense		9,740		9,177		563			6.1	%
General and administrative		18,116		19,288		(1,172	)		(6.1	)%
Provision for impairment of investment in rental properties		1,380		2,012		(632	)		(31.4	)%
Total operating expenses	$	99,037	$	92,415	$	6,622			7.2	%

Depreciation and amortization

The increase in depreciation and amortization for the six months ended June 30, 2022 was primarily due to growth in our real estate portfolio.

General and administrative

The decrease in general and administrative expenses mainly reflects decreased severance expense. During the six months ended June 30, 2021, we recognized severance associated with the departure of a named executive officer.

Provision for impairment of investment in rental properties

During the six months ended June 30, 2022, we recognized $1.4 million of impairment on our investments in rental properties, compared to $2.0 million during the six months ended June 30, 2021. The following table presents the impairment charges for the respective periods:

	For the Six Months Ended
	June 30,
(in thousands, except number of properties)	2022		2021
Number of properties		1		1
Carrying value prior to impairment charge	$	3,674	$	2,818
Fair value		2,294		806
Impairment charge	$	1,380	$	2,012

The timing and amount of impairment fluctuates from period to period depending on the specific facts and circumstances.

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Other income (expenses)

	For the Six Months Ended
	June 30,								Increase/(Decrease)
(in thousands)	2022				2021				$				%
Other income (expenses)
Interest income	$		—		$	11			$	(11		)	<(100.0	)%
Interest expense		(34,784		)		(31,538		)			3,246		10.3	%
Cost of debt extinguishment			—			(126		)		(126		)	<(100.0	)%
Gain on sale of real estate			5,267				8,571			(3,304		)	(38.5	)%
Income taxes		(813		)		(714		)		99			13.9	%
Change in fair value of earnout liability			—			(4,480		)			4,480		<(100.0	)%
Other income			1,506			14					1,492		>100.0	%

Interest expense

The increase in interest expense reflects an increase in our weighted average cost of borrowings combined with increased average outstanding borrowings during the six months ended June 30, 2022 compared to during the six months ended June 30, 2021. Since June 30, 2021 we increased total outstanding borrowings by $360.4 million to partially fund our acquisitions. Of our $1.9 billion of total outstanding indebtedness, approximately $200.5 million, or 10.8% is variable, and therefore subject to the impact of fluctuations in interest rates.

Gain on sale of real estate

Our recognition of a gain or loss on the sale of real estate varies from transaction to transaction based on fluctuations in asset prices and demand in the real estate market. During the six months ended June 30, 2022, we recognized a gain of $5.3 million on the sale of four properties, compared to a gain of $8.6 million on the sale of 19 properties during the six months ended June 30, 2021. Our proactive asset management strategy includes determining to sell any of our properties where we believe the risk profile has changed and become misaligned with our then current risk-adjusted return objectives.

Change in fair value of earnout liability

The fair value of the earnout liability was remeasured each reporting period, with changes recorded as Change in fair value of earnout liability in the Condensed Consolidated Statements of Income and Comprehensive Income. All earnout milestones were achieved during the year ended December 31, 2021, therefore there is no change in the fair value of the earnout liability during the six months ended June 30, 2022. The change in the fair value of the earnout liability during the six months ended June 30, 2021 reflected an increase in our share price as compared to December 31, 2020.

Other income

The increase in other income during the six months ended June 30, 2022 was primarily due to a $1.5 million unrealized foreign exchange gain recognized on the quarterly remeasurement of our $100 million CAD revolver borrowings. The specific CAD revolver borrowings were drawn during the first quarter of 2022, with no similar activity during the six months ended June 30, 2021.

Net income and Net earnings per diluted share

	For the Six Months Ended
	June 30,				Increase/(Decrease)
(in thousands, except per share data)	2022		2021		$		%
Net income	$	63,993	$	46,780	$	17,213		36.8	%
Net earnings per diluted share		0.36		0.30		0.06		20.0	%

The increase in net income is primarily due to revenue growth of $24.4 million, a $4.5 million increase in change in fair value of earnout liability, a $1.5 million increase in unrealized foreign exchange gain, and a $1.2 million decrease in general and administrative expenses. These factors were partially offset by a $7.9 million increase in depreciation and amortization, a $3.3 million decrease on gain on sale of real estate, and a $3.2 million increase in interest expense.

GAAP net income includes items such as gain or loss on sale of real estate and provisions for impairment, among others, which can vary from quarter to quarter and impact period-over-period comparisons.

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Liquidity and Capital Resources

General

We acquire real estate using a combination of debt and equity capital and with cash from operations that is not otherwise distributed to our stockholders. Our focus is on maximizing the risk-adjusted return to our stockholders through an appropriate balance of debt and equity in our capital structure. We are committed to maintaining an investment grade balance sheet through active management of our leverage profile and overall liquidity position. We believe our leverage strategy has allowed us to take advantage of the lower cost of debt while simultaneously strengthening our balance sheet, as evidenced by our current investment grade credit ratings of 'BBB' from S&P Global Ratings ("S&P") and 'Baa2' from Moody's Investors Service ("Moody's"). We manage our leverage profile using a ratio of Net Debt to Annualized Adjusted EBITDAre, a non-GAAP financial measure, which we believe is a useful measure of our ability to repay debt and a relative measure of leverage, and is used in communications with lenders and with rating agencies regarding our credit rating. We seek to maintain on a sustained basis a Net Debt to Annualized Adjusted EBITDAre ratio that is generally less than 6.0x. As of June 30, 2022, we had total debt outstanding of $1.9 billion, Net Debt of $1.8 billion, and a Net Debt to Annualized Adjusted EBITDAre ratio of 5.3x.

Net Debt and Annualized Adjusted EBITDAre are non-GAAP financial measures, and Annualized Adjusted EBITDAre is calculated based upon EBITDA, EBITDAre, and Adjusted EBITDAre, each of which is also a non-GAAP financial measure. Refer to Non-GAAP Measures below for further details concerning our calculation of non-GAAP measures and reconciliations to the comparable GAAP measure.

Liquidity/REIT Requirements

Liquidity is a measure of our ability to meet potential cash requirements, including our ongoing commitments to repay debt, fund our operations, acquire properties, make distributions to our stockholders, and other general business needs. As a REIT, we are required to distribute to our stockholders at least 90% of our REIT taxable income determined without regard to the dividends paid deduction and excluding net capital gains, on an annual basis. As a result, it is unlikely that we will be able to retain substantial cash balances to meet our long-term liquidity needs, including repayment of debt and the acquisition of additional properties, from our annual taxable income. Instead, we expect to meet our long-term liquidity needs primarily by relying upon external sources of capital.

Short-term Liquidity Requirements

Our short-term liquidity requirements consist primarily of funds necessary to pay for our operating expenses, including our general and administrative expenses as well as interest payments on our outstanding debt, to pay distributions, and to fund our acquisitions that are under control or expected to close within a short time period. We do not currently anticipate making significant capital expenditures or incurring other significant property costs, including as a result of inflationary pressures in the current economic environment, because of the strong occupancy levels across our portfolio and the net lease nature of our leases. We expect to meet our short-term liquidity requirements primarily from cash and cash equivalents balances and net cash provided by operating activities, supplemented by borrowings under our Revolving Credit Facility. We intend to match fund our acquisitions with an appropriate mix of debt and equity capital. We use cash on hand and borrowings under our Revolving Credit Facility to initially fund acquisitions, which are subsequently repaid or replaced with proceeds from our equity and debt capital markets activities.

As detailed in the contractual obligations table below, we have approximately $36.0 million of expected obligations due throughout the remainder of 2022, primarily consisting of $34.1 million of interest expense due, including the impact of our interest rate swaps, and $1.5 million of mortgage maturities. We expect our cash provided by operating activities, as discussed below, will be sufficient to pay for our current obligations including interest expense on our borrowings. We expect to either repay the maturing mortgages with available cash on hand generated from our results of operations or borrowings under our Revolving Credit Facility, or refinance with property-level borrowings.

Long-term Liquidity Requirements

Our long-term liquidity requirements consist primarily of funds necessary to repay debt and invest in additional revenue generating properties. We expect to source debt capital from unsecured term loans from commercial banks, revolving credit facilities, private placement senior unsecured notes, and public bond offerings.

The source and mix of our debt capital in the future will be impacted by market conditions as well as our continued focus on lengthening our debt maturity profile to better align with our portfolio's long-term leases, staggering debt maturities to reduce the risk that a significant amount of debt will mature in any single year in the future, and managing our exposure to interest rate risk. As of June 30, 2022, we have $679.3 million of available capacity under our Revolving Credit Facility.

We expect to meet our long-term liquidity requirements primarily from borrowings under our Revolving Credit Facility, future debt and equity financings, and proceeds from limited sales of our properties. Our ability to access these capital sources may be impacted by unfavorable market conditions, particularly in the debt and equity capital markets, that are outside of our control. In addition, our success

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will depend on our operating performance, our borrowing restrictions, our degree of leverage, and other factors. Our acquisition growth strategy significantly depends on our ability to obtain acquisition financing on favorable terms. We seek to reduce the risk that long-term debt capital may be unavailable to us by strengthening our balance sheet by investing in real estate with creditworthy tenants and lease guarantors, and by maintaining an appropriate mix of debt and equity capitalization. We also, from time to time, obtain or assume non-recourse mortgage financing from banks and insurance companies secured by mortgages on the corresponding specific property. Mortgages, however, are not currently a strategic focus of the active management of our capital structure.

Equity Capital Resources

Our equity capital is primarily provided through our at-the-market common equity offering program ("ATM Program"), as well as follow-on equity offerings. Under the terms of our ATM Program we may, from time to time, publicly offer and sell shares of our common stock having an aggregate gross sales price of up to $400 million. The ATM Program provides for forward sale agreements, enabling us to set the price of shares upon pricing the offering while delaying the issuance of shares and the receipt of the net proceeds. As of June 30, 2022, we have issued common stock with an aggregate gross sales price of $234.0 million under the ATM Program and could issue additional common stock with an aggregate sales price of up to $166.0 million.

The following table presents information about the Company's ATM Program activity:

	For the Three Months Ended		For the Six Months Ended
(in thousands, except per share amounts)	June 30, 2022		June 30, 2022
Number of common shares issued		3,236		9,509
Weighted average sale price per share	$	21.42	$	21.69
Net proceeds	$	68,321	$	202,647
Gross proceeds		69,313		205,857

Our public offerings have been used to repay debt, fund acquisitions, and for other general corporate purposes.

As we continue to invest in accretive real estate properties, we expect to balance our debt and equity capitalization, while maintaining a Net Debt to Annualized Adjusted EBITDAre ratio below 6.0x on a sustained basis, through the anticipated use of follow-on equity offerings and the ATM Program.

Unsecured Indebtedness and Capital Markets Activities as of and for the Six Months Ended June 30, 2022

The following table sets forth our outstanding Revolving Credit Facility, Unsecured Term Loans and Senior Unsecured Notes at June 30, 2022.

(in thousands, except interest rates)	Outstanding Balance		Interest Rate	Maturity Date
Unsecured revolving credit facility	$	320,657	Applicable reference rate + 0.85% (a)	Mar. 2026
Unsecured term loans:
2024 Unsecured Term Loan		190,000	one-month LIBOR + 1.00%	Jun. 2024
2026 Unsecured Term Loan		400,000	one-month LIBOR + 1.00%	Feb. 2026
Total unsecured term loans		590,000
Senior unsecured notes:
2027 Senior Unsecured Notes - Series A		150,000	4.84%	Apr. 2027
2028 Senior Unsecured Notes - Series B		225,000	5.09%	Jul. 2028
2030 Senior Unsecured Notes - Series C		100,000	5.19%	Jul. 2030
2031 Senior Unsecured Public Notes		375,000	2.60%	Sep. 2031
Total senior unsecured notes		850,000
Total unsecured debt	$	1,760,657

(a)At June 30, 2022, a balance of $243.0 million was subject to the one-month Secured Overnight Financing Rate of 1.69%. The remaining balance includes $100 million CAD borrowings remeasured to $77.7 million USD, which was subject to the one-month Canadian Dollar Offered Rate of 2.23%.

On January 28, 2022, we amended and restated the Revolving Credit Facility, upsizing the capacity to $1.0 billion, extending the maturity date to March 2026 and reducing the applicable margin to 0.85% per annum.

On February 25, 2022, we repaid the $60.0 million 2022 Unsecured Term Loan with borrowings under our Revolving Credit Facility.

As of June 30, 2022, we had $320.7 million outstanding on our Revolving Credit Facility. We have $679.3 million of remaining capacity on our Revolving Credit Facility as of June 30, 2022.

Subsequent to quarter end, on August 1, 2022, we entered into two new unsecured bank term loans, including a $200 million, five year term loan that matures in 2027 (the "2027 Unsecured Term Loan"), and a $300 million, seven year term loan that matures in 2029 (the

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"2029 Unsecured Term Loan"). Borrowings on the new term loans bear interest at variable rates based on the Secured Overnight Financing Rate ("SOFR") plus a margin based on our credit rating ranging between 0.80% and 1.60% per annum for the 2027 Unsecured Term Loan, and 1.15% and 2.20% per annum for the 2029 Unsecured Term Loan. The initial applicable margin was 0.95% and 1.25% for the 2027 Unsecured Term Loan and 2029 Unsecured Term Loan, respectively. Proceeds from the loans were used to repay in full our $190 million unsecured term loan set to mature in 2024, including accrued interest, and a portion of the outstanding balance on our Revolver.

Debt Covenants

We are subject to various covenants and financial reporting requirements pursuant to our debt facilities, which are summarized below. As of June 30, 2022, we believe we were in compliance with all of our covenants on all outstanding borrowings. In the event of default, either through default on payments or breach of covenants, we may be restricted from paying dividends to our stockholders in excess of dividends required to maintain our REIT qualification. For each of the previous three years, we paid dividends out of our cash flows from operations in excess of the distribution amounts required to maintain our REIT qualification.

Covenants	Requirements
Leverage Ratio	≤ 0.60 to 1.00
Secured Indebtedness Ratio	≤ 0.40 to 1.00
Unencumbered Coverage Ratio	≥ 1.75 to 1.00
Fixed Charge Coverage Ratio	≥ 1.50 to 1.00
Total Unsecured Indebtedness to Total Unencumbered Eligible Property Value	≤ 0.60 to 1.00
Dividends and Other Restricted Payments	Only applicable in case of default
Aggregate Debt Ratio	≤ 0.60 to 1.00
Consolidated Income Available for Debt to Annual Debt Service Charge	≥ 1.50 to 1.00
Total Unencumbered Assets to Total Unsecured Debt	≥ 1.50 to 1.00
Secured Debt Ratio	≤ 0.40 to 1.00

Contractual Obligations

The following table provides information with respect to our contractual commitments and obligations as of June 30, 2022 (in thousands). Refer to the discussion in the Liquidity and Capital Resources section above for further discussion over our short and long-term obligations.

Year of Maturity	Term Loans		Revolving Credit Facility (a)		Senior Notes		Mortgages		Interest Expense (b)		Tenant Improvement Allowances		Operating Leases		Total
Remainder    of 2022	$	—	$	—	$	—	$	1,466	$	34,078	$	57	$	424	$	36,025
2023		—		—		—		7,582		67,463		—		705		75,750
2024		190,000		—		—		9,760		64,088		—		320		264,168
2025		—		—		—		20,195		60,660		—		326		81,181
2026		400,000		320,657		—		16,843		42,122		—		332		779,954
Thereafter		—		—		850,000		39,874		88,769		—		3,739		982,382
Total	$	590,000	$	320,657	$	850,000	$	95,720	$	357,180	$	57	$	5,846	$	2,219,460

(a)The Revolving Credit Facility contains two six-month extension options subject to certain conditions, including the payment of an extension fee equal to 0.0625% of the revolving commitments.

(b)Interest expense is projected based on the outstanding borrowings and interest rates in effect as of June 30, 2022. This amount includes the impact of interest rate swap agreements.

At June 30, 2022 investment in rental property of $159.5 million was pledged as collateral against our mortgages.

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Additionally, we are a party to three separate tax protection agreements with the contributing members of three distinct UPREIT transactions and we entered into the Founding Owners' Tax Protection Agreement in connection with the Internalization. The tax protection agreements require us to indemnify the beneficiaries in the event of a sale, exchange, transfer, or other disposal of the contributed property, and in the case of the Founding Owners' Tax Protection Agreement, the entire Company, in a taxable transaction that would cause such beneficiaries to recognize a gain that is protected under the agreements, subject to certain exceptions. Based on values as of June 30, 2022, taxable sales of the applicable properties would trigger liability under the four agreements of approximately $22.3 million. Based on information available, we do not believe that the events resulting in damages as detailed above have occurred or are likely to occur in the foreseeable future. Accordingly, we have excluded these commitments from the contractual commitments table above.

In the normal course of business, we enter into various types of commitments to purchase real estate properties. These commitments are generally subject to our customary due diligence process and, accordingly, a number of specific conditions must be met before we are obligated to purchase the properties.

Derivative Instruments and Hedging Activities

We are exposed to interest rate risk arising from changes in interest rates on the floating-rate borrowings under our unsecured credit facilities and a certain mortgage. Borrowings pursuant to our unsecured credit facilities bear interest at floating rates based on LIBOR plus an applicable margin. Accordingly, fluctuations in market interest rates may increase or decrease our interest expense, which will in turn, increase or decrease our net income and cash flow.

We attempt to manage the interest rate risk on variable rate borrowings by entering into interest rate swaps. As of June 30, 2022, we had 28 interest rate swaps outstanding in an aggregate notional amount of $717.7 million. Under these agreements, we receive monthly payments from the counterparties equal to the related variable interest rates multiplied by the outstanding notional amounts. In turn, we pay the counterparties each month an amount equal to a fixed interest rate multiplied by the related outstanding notional amounts. The intended net impact of these transactions is that we pay a fixed interest rate on our variable-rate borrowings. The interest rate swaps have been designated by us as cash flow hedges for accounting purposes and are reported at fair value. We assess, both at inception and on an ongoing basis, the effectiveness of our qualifying cash flow hedges. We have not entered, and do not intend to enter, into derivative or interest rate transactions for speculative purposes.

In addition, we own investments in Canada, and as a result are subject to risk from the effects of exchange rate movements in the Canadian dollar, which may affect future costs and cash flows. We funded a significant portion of our Canadian investments through Canadian dollar borrowings under our Revolving Credit Facility, which is intended to act as a natural hedge against our Canadian dollar investments. The Canadian dollar revolving borrowings are remeasured each reporting period, with the unrealized foreign currency gains and losses flowing through earnings. These unrealized foreign currency gains and losses do not impact our cash flows from operations until settled, and are expected to directly offset the changes in the value of our net investments as a result of changes in the Canadian dollar. Our Canadian investments are recorded at their historical exchange rates, and therefore are not impacted by changes in the value of the Canadian dollar.

Cash Flows

Cash and cash equivalents and restricted cash totaled $29.0 million and $87.0 million at June 30, 2022 and June 30, 2021, respectively. The table below shows information concerning cash flows for the six months ended June 30, 2022 and 2021:

	For the Six Months Ended
	June 30,			June 30,
(In thousands)	2022			2021
Net cash provided by operating activities	$	117,959		$	99,015
Net cash used in investing activities		(379,971	)		(242,712	)
Net cash provided by financing activities		263,219			119,977
Increase (decrease) in cash and cash equivalents and restricted cash	$	1,207		$	(23,720	)

The increase in net cash provided by operating activities during the six months ended June 30, 2022 as compared to the six months ended June 30, 2021, was mainly due to growth in our real estate portfolio and associated incremental net lease revenues.

The increase in cash used in investing activities during the six months ended June 30, 2022 as compared to the six months ended June 30, 2021, was mainly due to increased acquisition volume and decreased disposition volume during the six months ended June 30, 2022.

The increase in net cash provided by financing activities during the six months ended June 30, 2022 as compared to the six months ended June 30, 2021, mainly reflects an increased borrowings on the unsecured revolving credit facility to fund the increased acquisition volume.

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Non-GAAP Measures

FFO, Core FFO, and AFFO

We compute Funds From Operations ("FFO") in accordance with the standards established by the Board of Governors of 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. Nareit 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. 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 (losses) 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 compute Core Funds From Operations ("Core FFO") by adjusting FFO, as defined by Nareit, to exclude certain GAAP income and expense amounts that we believe are infrequently recurring, unusual in nature, or not related to its core real estate operations, including write-offs or recoveries of accrued rental income, lease termination fees, the change in fair value of our earnout liability, cost of debt extinguishments, unrealized and realized gains or losses on foreign currency transactions, severance, and other extraordinary items. Exclusion of these items from similar FFO-type metrics is common within the equity REIT industry, and management believes that presentation of Core FFO provides investors with a metric to assist in their evaluation of our operating performance across multiple periods and in comparison to the operating performance of our peers, because it removes the effect of unusual items that are not expected to impact our operating performance on an ongoing basis.

We compute Adjusted Funds From Operations ("AFFO"), by adjusting Core FFO for certain non-cash revenues and expenses, including straight-line rents, 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, and other specified non-cash items. We believe that 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. We use AFFO as a measure of our performance when we formulate corporate goals, and is a factor in determining management compensation. 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.

Specific to our adjustment for straight-line rents, our leases include cash rents that increase over the term of the lease to compensate us for anticipated increases in market rental rates over time. 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. In situations where we granted short-term rent deferrals as a result of the COVID-19 pandemic, and such deferrals were probable of collection and expected to be repaid within a short term, we continued to recognize the same amount of GAAP lease revenues each period. Consistent with GAAP lease revenues, the short-term deferrals associated with COVID-19, and the corresponding payments, did not impact our AFFO.

FFO, Core FFO, and AFFO may not be comparable to similarly titled measures employed by other REITs, and comparisons of our FFO, Core 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 to FFO that we use to calculate Core FFO and AFFO. In the future, the SEC, Nareit 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 Core FFO and AFFO accordingly.

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The following table reconciles net income (which is the most comparable GAAP measure) to FFO, Core FFO, and AFFO:

	For the Three Months Ended						For the Six Months Ended
(in thousands, except per share data)	June 30, 2022			March 31, 2022			June 30, 2022			June 30, 2021
Net income	$	35,552		$	28,441		$	63,993		$	46,780
Real property depreciation and amortization		35,479			34,259			69,738			61,892
Gain on sale of real estate		(4,071	)		(1,196	)		(5,267	)		(8,571	)
Provision for impairment on investment in rental properties		1,380			—			1,380			2,012
FFO	$	68,340		$	61,504		$	129,844		$	102,113
Net write-offs of accrued rental income		—			1,326			1,326			442
Cost of debt extinguishment		—			—			—			126
Severance		278			120			398			1,275
Change in fair value of earnout liability		—			—			—			4,480
Other (income) expenses (a)		(2,632	)		1,126			(1,506	)		(14	)
Core FFO	$	65,986		$	64,076		$	130,062		$	108,422
Straight-line rent adjustment		(4,965	)		(4,934	)		(9,899	)		(10,053	)
Adjustment to provision for credit losses		(1	)		—			(1	)		(1	)
Amortization of debt issuance costs		900			856			1,756			1,870
Amortization of net mortgage premiums		(25	)		(27	)		(52	)		(72	)
Loss (gain) on interest rate swaps and other non-cash interest expense		695			659			1,354			(83	)
Amortization of lease intangibles		(1,167	)		(1,158	)		(2,325	)		(1,369	)
Stock-based compensation		1,381			929			2,310			2,720
AFFO	$	62,804		$	60,401		$	123,205		$	101,434

(a)Amount includes ($2.6) million and $1.1 million of unrealized and realized foreign exchange (gain) loss during the three months ended June 30, 2022 and March 31, 2022, respectively, and ($1.5) million of unrealized foreign exchange (gain) for the six months ended June 30, 2022, primarily associated with our CAD denominated revolving borrowings.

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EBITDA, EBITDAre, Adjusted EBITDAre and Annualized Adjusted EBITDAre

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. We compute EBITDAre in accordance with the definition adopted by Nareit, as EBITDA excluding gains (losses) 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. EBITDA and EBITDAre are not measures of financial performance under GAAP, and our EBITDA and EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider our EBITDA and EBITDAre as alternatives to net income or cash flows from operating activities determined in accordance with GAAP.

We are focused on a disciplined and targeted acquisition strategy, together with active asset management that includes selective sales of properties. We manage our leverage profile using a ratio of Net Debt to Annualized Adjusted EBITDAre, each discussed further below, which we believe is a useful measure of our ability to repay debt and a relative measure of leverage, and is used in communications with our lenders and rating agencies regarding our credit rating. As we fund new acquisitions using our unsecured Revolving Credit Facility, our leverage profile and Net Debt will be immediately impacted by current quarter acquisitions. However, the full benefit of EBITDAre from newly acquired properties will not be received in the same quarter in which the properties are acquired. Additionally, EBITDAre for the quarter includes amounts generated by properties that have been sold during the quarter. Accordingly, the variability in EBITDAre caused by the timing of our acquisitions and dispositions can temporarily distort our leverage ratios. We adjust EBITDAre ("Adjusted EBITDAre") for the most recently completed quarter (i) to recalculate as if all acquisitions and dispositions had occurred at the beginning of the quarter, (ii) to exclude certain GAAP income and expense amounts that are either non-cash, such as cost of debt extinguishments, realized or unrealized gains and losses on foreign currency transactions, 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 (iii) to eliminate the impact of lease termination fees and other items that are not a result of normal operations. We then annualize quarterly Adjusted EBITDAre by multiplying it by four ("Annualized Adjusted EBITDAre"). You should not unduly rely on this measure as it is based on assumptions and estimates that may prove to be inaccurate. Our actual reported EBITDAre for future periods may be significantly different from our Annualized Adjusted EBITDAre. Adjusted EBITDAre and Annualized Adjusted EBITDAre are not measurements of performance under GAAP, and our Adjusted EBITDAre and Annualized Adjusted EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider our Adjusted EBITDAre and Annualized Adjusted EBITDAre as alternatives to net income or cash flows from operating activities determined in accordance with GAAP.

The following table reconciles net income (which is the most comparable GAAP measure) to EBITDA, EBITDAre, and Adjusted EBITDAre. Information is also presented with respect to Annualized EBITDAre and Annualized Adjusted EBITDAre:

	For the Three Months Ended
(in thousands)	June 30, 2022			March 31, 2022			June 30, 2021
Net income	$	35,552		$	28,441		$	22,820
Depreciation and amortization		35,511			34,290			31,225
Interest expense		17,888			16,896			15,430
Income taxes		401			412			301
EBITDA	$	89,352		$	80,039		$	69,776
Provision for impairment of investment in rental properties		1,380			—			—
Gain on sale of real estate		(4,071	)		(1,196	)		(3,838	)
EBITDAre	$	86,661		$	78,843		$	65,938
Adjustment for current quarter acquisition activity (a)		2,780			3,225			2,761
Adjustment for current quarter disposition activity (b)		(141	)		(79	)		(353	)
Adjustment to exclude change in fair value of earnout liability		—			—			5,604
Adjustment exclude net write-offs of accrued rental income		—			1,326			—
Adjustment to exclude realized / unrealized foreign exchange (gain) loss		(2,632	)		1,125			—
Adjusted EBITDAre	$	86,668		$	84,440		$	73,950
Annualized EBITDAre	$	346,642		$	315,375		$	263,761
Annualized Adjusted EBITDAre	$	346,672		$	337,759		$	295,808

(a)Reflects an adjustment to give effect to all acquisitions during the quarter as if they had been acquired as of the beginning of the quarter.

(b)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.

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Net Debt, Net Debt to Annualized EBITDAre and Net Debt to Annualized Adjusted EBITDAre

We define Net Debt as gross debt (total reported debt plus debt issuance costs) less cash and cash equivalents and restricted cash. We believe that the presentation of Net Debt to Annualized EBITDAre and Net Debt to Annualized Adjusted EBITDAre is useful to investors and analysts because these ratios provide information about gross debt less cash and cash equivalents, which could be used to repay debt, compared to our performance as measured using EBITDAre, and is used in communications with lenders and rating agencies regarding our credit rating. The following table reconciles total debt (which is the most comparable GAAP measure) to Net Debt, and presents the ratio of Net Debt to Annualized EBITDAre and Net Debt to Annualized Adjusted EBITDAre, respectively:

(in thousands)	June 30, 2022			March 31, 2022			June 30, 2021
Debt
Unsecured revolving credit facility	$	320,657		$	266,118		$	—
Unsecured term loans, net		587,098			586,884			910,994
Senior unsecured notes, net		844,178			843,990			472,637
Mortgages, net		95,453			96,141			105,748
Debt issuance costs		8,991			9,419			6,625
Gross Debt		1,856,377			1,802,552			1,496,004
Cash and cash equivalents		(16,813	)		(54,103	)		(78,987	)
Restricted cash		(12,163	)		(11,444	)		(8,021	)
Net Debt	$	1,827,401		$	1,737,005		$	1,408,996
Net Debt to Annualized EBITDAre	5.3x			5.5x			5.3x
Net Debt to Annualized Adjusted EBITDAre	5.3x			5.1x			4.8x

Critical Accounting Policies and Estimates

This Management's Discussion and Analysis of Financial Condition and Results of Operations is based upon our Condensed Consolidated Financial Statements, which have been prepared in accordance with GAAP. The preparation of these Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses as well as other disclosures in the financial statements. We base our estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances. These judgments affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, management evaluates its estimates and assumptions; however, actual results may differ from these estimates and assumptions, which in turn could have a material impact on our financial statements. A summary of our significant accounting policies and procedures are included in Note 2, "Summary of Significant Accounting Policies," in the Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q. We believe there have been no significant changes during the six months ended June 30, 2022, to the items that we disclosed as our critical accounting policies and estimates in our 2021 Annual Report on Form 10-K.

Impact of Recent Accounting Pronouncements

For information on the impact of recent accounting pronouncements on our business, see Note 2 of the Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

We are exposed to certain market risks, one of the most predominant of which is a change in interest rates. Increases in interest rates can result in increased interest expense under our Revolving Credit Facility and other variable-rate debt. Increases in interest rates can also result in increased interest expense when our fixed rate debt matures and needs to be refinanced. We attempt to manage interest rate risk by entering into long-term fixed rate debt or by entering into interest rate swaps to convert certain variable-rate debt to a fixed rate. The interest rate swaps have been designated by us as cash flow hedges for accounting purposes and are reported at fair value. We have not entered, and do not intend to enter, into derivative or interest rate transactions for speculative purposes. Further information concerning our interest rate swaps can be found in Note 11 in our Condensed Consolidated Financial Statements contained elsewhere in this Quarterly Report on Form 10-Q.

Our fixed-rate debt includes our Senior Unsecured Notes, mortgages, and variable-rate debt converted to a fixed rate with the use of interest rate swaps. Our fixed-rate debt had a carrying value and fair value of approximately $1.7 billion and $1.6 billion, respectively, as of June 30, 2022. Changes in market interest rates impact the fair value of our fixed-rate debt, but they have no impact on interest incurred or on cash flows. For instance, if interest rates were to increase 1%, and the fixed-rate debt balance were to remain constant,

46

we would expect the fair value of our debt to decrease, similar to how the price of a bond decreases as interest rates rise. A 1% increase in market interest rates would have resulted in a decrease in the fair value of our fixed-rate debt of approximately $82.4 million as of June 30, 2022.

Borrowings pursuant to our Revolving Credit Facility and other variable-rate debt bear interest at rates based on the applicable reference rate plus an applicable margin, and totaled $918.2 million as of June 30, 2022, of which $717.7 million was swapped to a fixed rate by our use of interest rate swaps. Taking into account the effect of our interest rate swaps, a 1% increase or decrease in interest rates would have a corresponding $2.0 million increase or decrease in interest expense annually.

With the exception of our interest rate swap transactions, we have not engaged in transactions in derivative financial instruments or derivative commodity instruments.

Foreign Currency Exchange Rate Risk

We own investments in Canada, and as a result are subject to risk from the effects of exchange rate movements in the Canadian dollar, which may affect future costs and cash flows. We funded a significant portion of our Canadian investments through Canadian dollar borrowings under our Revolving Credit Facility, which is intended to act as a natural hedge against our Canadian dollar investments. To the extent that currency fluctuations increase or decrease rental revenues, as translated to U.S. dollars, the change in debt service (comprised of interest payments), as translated to U.S. dollars, will partially offset the effect of fluctuations in revenue and, to some extent, mitigate the risk from changes in foreign currency exchange rates. We believe the foreign currency exchange rate risk on the remaining cash flows is immaterial.

Additionally, our Canadian dollar revolving borrowings are remeasured each reporting period, with the unrealized foreign currency gains and losses flowing through earnings. These unrealized foreign currency gains and losses do not impact our cash flows from operations until settled, and are expected to directly offset the changes in the value of our net investments as a result of changes in the Canadian dollar. Our Canadian investments are recorded at their historical exchange rates, and therefore are not impacted by changes in the value of the Canadian dollar.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. As of and for the quarter ended June 30, 2022, we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective and were operating at a reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the quarter ended June 30, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II – OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we are subject to various lawsuits, claims, and other legal proceedings that arise in the ordinary course of our business. We are not currently a party to legal proceedings that we believe would reasonably be expected to have material adverse effect on our business, financial condition, or results of operations. We are not aware of any material legal proceedings to which we or any of our subsidiaries are a party or to which any of our property is subject, nor are we aware of any such legal proceedings contemplated by government agencies.

Item 1A. Risk Factors.

There have been no material changes from the risk factors set forth in our 2021 Annual Report on Form 10-K for the year ended December 31, 2021.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

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Item 6. Exhibits

No.	Description
3.1	Articles of Incorporation of Broadstone Net Lease, Inc. (filed as Exhibit 3.1 to the Corporation's Registration Statement on Form 10 filed April 24, 2017 and incorporated herein by reference)
3.2	Articles of Amendment of Broadstone Net Lease, Inc. (filed as Exhibit 3.1 to the Corporation's Current Report on Form 8-K filed September 18, 2020 and incorporated herein by reference)
3.3	Articles Supplementary of Broadstone Net Lease, Inc. (filed as Exhibit 3.2 to the Corporation's Current Report on Form 8-K filed September 18, 2020 and incorporated herein by reference)
3.4	Articles of Amendment of Broadstone Net Lease, Inc. (filed as Exhibit 3.3 to the Corporation's Current Report on Form 8-K filed September 18, 2020 and incorporated herein by reference)
3.5	Second Amended and Restated Bylaws of Broadstone Net Lease, Inc., adopted March 23, 2020 (filed as Exhibit 3.1 to the Corporation's Current Report on Form 8-K filed March 25, 2020 and incorporated herein by reference)
4.1	Indenture, dated as of September 15, 2021, among the Issuer, the Company and the Trustee, including the form of the Guarantee (filed as Exhibit 4.1 to the Corporation's Current Report on Form 8-K filed September 10, 2021 and incorporated herein by reference)
4.2	First Supplemental Indenture, dated as of September 15, 2021, among the Issuer, the Company and the Trustee, including the form of the Notes (filed as Exhibit 4.2 to the Corporation's Current Report on Form 8-K filed September 10, 2021 and incorporated herein by reference)
10.1*	Broadstone Net Lease, Inc. Change in Control Severance Protection Policy
31.1*	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*†	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*†	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document – the instance document does not appear in Interactive Data File because its XBRL tags are embedded within the Inline XBRL Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Filed herewith.

† In accordance with Item 601(b)(32) of Regulation S-K, this Exhibit is not deemed "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the Registrant specifically incorporates it by reference.

49

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 thereunto duly authorized.

	BROADSTONE NET LEASE, INC.
Date: August 4, 2022	/s/ Christopher J. Czarnecki
	Christopher J. Czarnecki
	Chief Executive Officer and President
Date: August 4, 2022	/s/ Ryan M. Albano
	Ryan M. Albano
	Executive Vice President and Chief Financial Officer

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EX-10.1

EXHIBIT 10.1

 

CHANGE IN CONTROL SEVERANCE PROTECTION POLICY

This Broadstone Net Lease, Inc. Severance Protection Policy has been adopted by the Compensation Committee of the Board of Directors of Broadstone Net Lease, Inc. to apply to applicable employees of the Company. Participants will be eligible for severance protection in connection with a Change in Control and certain termination of employment events, subject to the conditions set forth below. This Policy shall be effective as of the Effective Date as provided herein.

1.Definitions. For purposes of this Policy, the following terms shall have the following meaning:

“Annual Base Salary” shall mean a Participant’s stated annual compensation without regard to any bonus, perquisite or other benefits.

“Annual Bonus” means the annual target bonus to which the Participant is eligible under the Company’s annual bonus or incentive compensation program as in effect from time to time.

“Cause” means any of the following: (i) conduct by the Participant that amounts to willful misconduct, gross neglect, or a material refusal to perform the Participant’s duties and responsibilities, which conduct, if susceptible to a cure in the reasonable discretion of the REIT, remains uncured for ten (10) business days following delivery of a written notice to the Participant setting forth the nature of such conduct; (ii) any willful violation of any material law, rule, or regulation applicable to the Company generally; (iii) the Participant’s material violation of any material written policy, board committee charter, or code of ethics or business conduct (or similar code) of the Company to which the Participant is subject, which violation, if susceptible to a cure in the reasonable discretion of the REIT, remains uncured for ten (10) business days following delivery of a written notice to the Participant setting forth the nature of such violation; (iv) any act of fraud, misappropriation, or embezzlement by the Participant, whether or not such act was committed in connection with the business of the Company; (v) the Participant’s charge with, indictment for, conviction of, or entry of a plea of guilty or nolo contendere or no contest with respect to: (X) any felony, or any misdemeanor involving dishonesty or moral turpitude (including pleading guilty or nolo contendere to a felony or lesser charge which results from plea bargaining), whether or not such felony, crime or lesser offense is connected with the business of the Company, or (Y) any crime connected with the business of the Company; or (vi) the Participant’s deliberate misrepresentation in connection with, or willful failure to cooperate with, a bona fide internal investigation or an investigation by regulatory or law enforcement authorities, after being instructed by the Company to cooperate, or the willful destruction or failure to preserve documents or other materials known to be relevant to such investigation or the willful inducement of others to fail to cooperate or to produce documents or other materials as reasonably requested by the Company or its legal counsel.

“Change in Control” means and includes the occurrence of any one of the following events:

(i)during any consecutive 12-month period, individuals who, at the beginning of such period, constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority of such Board, provided that any person becoming a director after the beginning of such 12-month period and whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then on the Board shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director as a result of an actual or threatened election contest with respect to the election or removal of directors (“Election Contest”) or other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board (“Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent Director; or

(ii)any individual, entity or group (within the meaning of Section 3(a)(9) of the Securities Exchange Act of 1934 Act (“1934 Act”) and as used in Section 13(d)(3) or 14(d)(2) of the 1934 Act) (a “Person”) becomes a “beneficial owner” (as defined in Rule 13d-3 of the General Rules and Regulations under the 1934 Act) (“Beneficial Owner”), directly or indirectly, of either (A) 50% or more of the then-outstanding shares of common stock of the REIT (“REIT Common Stock”) or (B) securities of the REIT representing 50% or more of the combined voting power of the REIT’s then outstanding securities eligible to vote for the election of directors (the “REIT Voting Securities”); provided, however, that for purposes of this subsection (2), the following acquisitions of REIT Common Stock or REIT Voting Securities shall not constitute a Change in Control: (w) an acquisition directly from the REIT, (x) an acquisition by the REIT or any corporation, limited liability company, partnership or other entity of which a majority of the outstanding voting stock or voting power is beneficially owned directly or indirectly by the REIT (a “Subsidiary”), (y) an acquisition by any employee benefit plan (or related trust) sponsored or maintained by the REIT or any Subsidiary, or (z) an acquisition pursuant to a Non-Qualifying Transaction (as defined in subsection (3) hereof); or

(iii)the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the REIT or a Subsidiary (a “Reorganization”), or the sale or other disposition of all or substantially all of the REIT’s assets (a “Sale”) or the acquisition of assets or stock of another corporation or other entity (an “Acquisition”), unless immediately following such Reorganization, Sale or Acquisition: (A) all or substantially all of the individuals and entities who were the Beneficial Owners, respectively, of the outstanding REIT Common Stock and outstanding REIT Voting Securities immediately prior to such Reorganization, Sale or Acquisition beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Reorganization, Sale or Acquisition (including, without limitation, an entity which as a result of such transaction owns the REIT or all or substantially all of the REIT’s assets or stock either directly or through one or more subsidiaries, the “Surviving Entity”) in substantially the same proportions as their

ownership, immediately prior to such Reorganization, Sale or Acquisition, of the outstanding REIT Common Stock and the outstanding REIT Voting Securities, as the case may be, and (B) no person (other than (x) the REIT or any Subsidiary, (y) the Surviving Entity or its ultimate parent entity, or (z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing) is the Beneficial Owner, directly or indirectly, of 50% or more of the total common stock or 50% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Surviving Entity, and (C) at least a majority of the members of the board of directors of the Surviving Entity were Incumbent Directors at the time of the Board of Director’s approval of the execution of the initial agreement providing for such Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); or

(iv)approval by the stockholders of the REIT of a complete liquidation or dissolution of the Company.

“Change in Control Protection Period” means the period starting on the date that is three (3) months prior to a Change in Control and ending on the date that is twelve (12) months following a Change in Control.

“Code” means the Internal Revenue Code of 1986, as amended.

“Company” means collectively the REIT, Operating Company and REIT Operator.

“Compensation Committee” means the Compensation Committee of the Board of Directors of the REIT.

“Date of Termination” means the effective date of the relevant Participant’s termination of employment with the Company.

“Effective Date” means April 29, 2022, or such later date as determined by the Compensation Committee with respect to a Participant.

“Excluded Employees” means each executive officer of the Company who is party to an individual employment agreement with the Company and such other individuals as identified by the Compensation Committee.

“Good Reason” means without the Participant’s express written consent: (i) a material diminution in the Participant’s title, position, authority, duties, or responsibilities; (ii) a material diminution in the authority, duties, or responsibilities of the supervisor to whom Participant is required to report; (iii) a material diminution in the Participant’s Annual Base Salary or Annual Bonus; (iv) a willful and material breach by the Company of this Agreement; or (v) the relocation (without the written consent of the Participant) of Participant’s principal place of employment by more than thirty-five (35) miles from the Participant’s then current physical place of employment. Notwithstanding the foregoing, (A) Good Reason shall not be deemed to exist unless notice of termination on account thereof is given no later than ninety (90) days after the time at which the Participant has knowledge that the event or condition purportedly giving rise to Good Reason first occurs or arises , (B) if there exists an event or condition that constitutes Good

Reason, the Company shall have thirty (30) days from the date notice of such termination is received to cure such event or condition and, if the Company does so, such event or condition shall not constitute Good Reason hereunder and (C) the Participant provides written notice of termination with Good Reason within sixty (60) days following the Company’s failure to cure such event or condition.

“Operating Company” means Broadstone Net Lease, LLC, a New York limited liability company.

“Participant” means employees of the Company, other than the Excluded Employees, in each case employed by the Company on a full-time or part-time basis.

“Policy” means this Broadstone Net Lease, Inc. Severance Protection Policy.

“Qualifying Termination” means the Participant’s termination of employment by the Company, or the applicable successor entity, without Cause, or by the Participant for Good Reason, in either case during the Change of Control Protection Period; provided that in the case of a termination event during the three (3) month period prior to a Change in Control, the Change in Control must actually occur in order for the termination to be considered a Qualifying Termination, and, for purposes of this policy, such termination will be considered to occur on the date of the occurrence of the Change in Control.

“REIT” means Broadstone Net Lease, Inc., a Maryland corporation.

“REIT Operator” means Broadstone Employee Sub, LLC, a New York limited liability company.

“Separation from Service” means a termination of the employment relationship of the Participant with the Company or an affiliate within the meaning of Section 409A of the Code and Treasury Regulation section 1.409A-1(h) or any successor thereto.

“Severance Period” means (i) for Participants at the level of Senior Vice President, twelve (12) months following the Date of Termination, (ii) for Participants at the level of Vice President, nine (9) months following the Date of Termination and (iii) for all other Participants, six (6) months following the Date of Termination.

2.Term of Policy. The term of this Policy shall begin on the Effective Date and shall continue in effect until modified or terminated by the Company pursuant to Section 13 hereof.

3.Termination. The Company may terminate the employment of Executive for any reason and at any time. In the event that the Participant incurs a Qualifying Termination, Executive shall be entitled to the following rights and benefits under this Section 3:

3.1Severance Benefits. Subject to Executive’s compliance with all terms of this Policy, including, without limitation, Section 5 hereof:

(i)Salary Continuation Payments. The REIT Operator, or its applicable successor, will pay Participant an amount equal to the amount of the Participant’s Annual Base Salary that

would be earned during the Severance Period, payable in a lump sum in accordance with Section 5, hereof.

(ii)Severance Period Bonus Payment. The REIT Operator, or its applicable successor, will pay Participant an amount equal to the Participant’s Annual Bonus, payable in a lump sum in accordance with Section 5, hereof).

(iii)Pro-Rata Bonus. The REIT Operator, or its applicable successor, will pay Participant an amount equal to the product of (A) the Participant’s Annual Bonus, if any, and (B) a fraction, the numerator of which is the number of days Participant was employed by the Company during the calendar year of termination, and the denominator of which is the number of days in such calendar year. This amount shall be paid in a lump sum in accordance with Section 5, hereof.

(iv)Continued Health Benefit Coverage. If Participant timely and properly elects to continue participation in any group medical, dental, vision and /or prescription drug plan benefits to which Participant or Participant’s eligible dependents would be entitled under the Consolidated Omnibus Budget Reconciliation Act (COBRA), then REIT Operator will pay Participant a monthly cash payment equal to the excess of (x) the COBRA cost of coverage for each month during the Severance Period over (y) the amount that the Participant would have had to pay for such coverage if Participant had remained employed by the REIT Operator (or its successor) during the Severance Period and paid the active employee rate for such coverage, less withholding taxes and other similar items (the “Benefits Payments”), paid in accordance with the Company’s customary payroll practices, and in accordance with Section 5 hereof. Notwithstanding the foregoing, the right to Benefits Payments set forth herein will end immediately upon Participant becoming eligible to receive group health benefits under a program of a subsequent employer or otherwise (including but not limited to coverage available to Participant’s spouse).

3.2Accrued Rights. Within fifteen (15) business days following the Date of Termination, the REIT Operator or its applicable successor will pay or provide Participant with (i) all accrued but unpaid base salary through the Date of Termination, (ii) vacation pay accrued but not used in accordance with the Company’s vacation pay policy, (iii) any previously awarded but unpaid Annual Bonus for a completed calendar year prior to the Date of Termination, (iv) any unreimbursed business expenses that are reimbursable under the Company’s business expense policy, and (v) all rights and benefits under the employee benefit plans of the Company in which Participant is then participating, (collectively, the “Accrued Rights”).

3.3Equity Awards. This Policy does not affect the terms of outstanding equity awards. The treatment of all equity awards held by the Participant on the Date of Termination, if any, will be determined in accordance with the terms of the applicable award agreement and equity plan pursuant to which each outstanding equity award was granted.

3.4No Additional Rights. Except as provided in this Section 3, Participant’s participation under any benefit plan, program, policy or arrangement sponsored or maintained by the Company shall be treated in accordance with the terms of the applicable plan. Without limiting the generality of the foregoing, Participant’s eligibility for and active participation in any of the retirement plans maintained by the Company will end on the Date of Termination and Participant will earn no additional benefits, including, without limitation, any additional service credit, under

those plans after that date. Participant shall be treated as a terminated employee for purposes of all such benefit plans and programs effective as of the Date of Termination, and shall receive all payments and benefits due under such plans and programs in accordance with the terms and conditions thereof.

4.Other Terminations. The Company may terminate the employment of Participant for any reason and at any time. In the event that the Company terminates the employment of the Participant during the term of the Policy, other than a Qualifying Termination, the terms of this Policy will not apply. If the Company terminates the employment of the Participant for Cause during the Change in Control Protection Period, the REIT Operator or its applicable successor will pay or provide Participant with all Accrued Rights. Participant may terminate his or her employment for any reason and at any time and shall not be entitled to any payments or benefits under this Policy by reason of such termination of employment from the Company, unless such termination constitutes a Qualifying Termination. This Policy shall have no effect on the rights and benefits to which a Participant is entitled upon retirement under (without limitation) any retirement or savings plan of the Company, which shall be governed exclusively by the terms of such plans and agreements, as applicable.

5.Release.

5.1As a condition precedent to receiving the payments and benefits set forth in Section 3.1 of this Policy, Participant will execute (and not revoke) a general release of claims (the “Release”), in a form provided by the Company. If Participant fails to execute and deliver the Release, or revokes the Release, Participant agrees that Participant shall not be entitled to receive the payments and benefits described herein.

5.2Except as otherwise specified or agreed to by the Participant and the Company, payment of any amounts described hereunder that are subject to the Release will begin on the 60th day following the Date of Termination, with the first such payment to include any amounts attributable to payroll intervals occurring prior to such date, provided, however, that, to the extent that the payments are exempt from Section 409A of the Code, such exempt payments shall be made beginning with the first payroll date following the effectiveness of the Release.

6.Section 280G.

6.1Treatment of Payments. Notwithstanding anything in this Agreement or any other plan, arrangement or agreement to the contrary, in the event that an accounting firm or a nationally recognized tax firm specializing in Code Section 280G calculations which shall be designated by the Company prior to a Change in Control (the “Accounting Firm”) shall determine that any payment or benefit received or to be received by the Participant from the Company or any of its affiliates or from any person who effectuates a change in control or effective control of the Company or any of such person’s affiliates (whether pursuant to the terms of this Policy or any other plan, arrangement or agreement) (all such payments and benefits, the “Total Payments”) would fail to be deductible under Section 280G of the Code or otherwise would be subject (in whole or part) to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the payments or benefits to be received by the Participant that are subject to Section 280G or 4999 of the Code shall be reduced to the extent necessary so that no portion of the Total Payments is subject

to the Excise Tax, but such reduction shall occur if and only to the extent that the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes, and employment, Social Security and Medicare taxes on such reduced Total Payments), is greater than or equal to the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes and employment, Social Security and Medicare taxes on such Total Payments and the amount of Excise Tax (or any other excise tax) to which the Participant would be subject in respect of such unreduced Total Payments). For purposes of this Section 6 the above tax amounts shall be determined by the Accounting Firm, applying the highest marginal rate under Section 1 of the Code and under state and local laws which applied (or is likely to apply) to the Participant’s taxable income for the tax year in which the transaction which causes the application of Section 280G or 4999 of the Code occurs, or such other rate(s) as the Accounting Firm determines to be likely to apply to the Participant in the relevant tax year(s) in which any of the Total Payments is expected to be made. If the Accounting Firm determines that the Participant would not retain a larger amount on an after-tax basis if the Total Payments were so reduced, then Executive shall retain all of the Total Payments.

6.2Ordering of Reduction. In the case of a reduction in the Total Payments pursuant to Section 5(a), the Total Payments will be reduced in the following order: (A) payments that are payable in cash (and that are not deferred compensation within the meaning of Section 409A of the Code) that are valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last reduced first; (B) payments and benefits due in respect of any equity valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a) (and that are not deferred compensation within the meaning of Section 409A of the Code), with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; (C) payments that are payable in cash (and that are not deferred compensation within the meaning of Section 409A of the Code) that are valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with amounts that are payable last reduced first, will next be reduced; (D) payments and benefits (that are not deferred compensation within the meaning of Section 409A of the Code) due in respect of any equity valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; and (E) all other cash or non-cash benefits not otherwise described in above will be next reduced pro-rata with any payments or benefits that are deferred compensation within the meaning of Section 409A of the Code being reduced last.

6.3Certain Determinations. For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax: (A) no portion of the Total Payments the receipt or enjoyment of which the Participant shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code will be taken into account; (B) no portion of the Total Payments will be taken into account which, in the opinion of the Accounting Firm, does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments will be taken into account which, in the opinion of the Accounting Firm, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base

amount” (as set forth in Section 280G(b)(3) of the Code) that is allocable to such reasonable compensation; and (C) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments will be determined by the Accounting Firm in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. Executive and the Company shall furnish such documentation and documents as may be necessary for the Accounting Firm to perform the requisite calculations and analysis under this Section 5 (and shall cooperate to the extent necessary for any of the determinations in this Section 6 to be made), and the Accounting Firm shall provide a written report of its determinations hereunder, including detailed supporting calculations. If the Accounting Firm determines that aggregate Total Payments should be reduced as described above, it shall promptly notify Executive and the Company to that effect. In the absence of manifest error, all determinations by the Accounting Firm under this Section 5 shall be binding on Executive and the Company and shall be made as soon as reasonably practicable following the later of Executive’s date of termination of employment or the date of the transaction which causes the application of Section 280G of the Code. The Company shall bear all costs, fees and expenses of the Accounting Firm and any legal counsel retained by the Accounting Firm.

6.4Additional Payments. If the Participant receives reduced payments and benefits by reason of this Section 6 and it is established pursuant to a determination of a court of competent jurisdiction which is not subject to review or as to which the time to appeal has expired, or pursuant to an Internal Revenue Service proceeding, that Participant could have received a greater amount without resulting in any Excise Tax, then the Company shall thereafter pay the Participant the aggregate additional amount which could have been paid without resulting in any Excise Tax as soon as reasonably practicable following such determination.

7.Section 409A.

7.1Compliance. It is intended that this Policy be exempt from the provisions of Section 409A of the Code and this Policy shall be construed, administered, and governed in a manner consistent with this intent. If and to the extent that any payment or benefit under this Policy is determined by the Company to constitute “non-qualified deferred compensation” subject to Section 409A of the Code and is payable to the Participant by reason of Executive’s termination of employment, then such payment or benefit shall be made or provided to the Participant only upon a Separation from Service as defined for purposes of Section 409A of the Code. Each severance payment under this Policy will be considered a “separate payment” and not one of a series of payments for purposes of Section 409A of the Code. To the extent that any benefits to be provided to the Participant pursuant to this Policy are considered nonqualified deferred compensation and are reimbursements subject to Treasury Regulation Section 1.409A-3(i)(1)(iv), then (i) the reimbursement of eligible expenses related to such benefits shall be made on or before the last day of the Participant’s taxable year following the Participant’s taxable year in which the expense was incurred and (ii) notwithstanding anything to the contrary in this Policy or any plan providing for such benefits, the amount of expenses eligible for reimbursement during any taxable year of the Participant shall not affect the expenses eligible for reimbursement in any other taxable year. Nothing in this Policy will provide a basis for any person to take action against the Company or its affiliates based on matters covered by Section 409A of the Code and in no event will the Company or its affiliates be liable for any additional tax, interest or penalties that may be imposed on the Participant under Section 409A of the Code or any damages for failing to comply with Section 409A of the Code.

7.2Six Month Delay for Specified Executives. To the extent that any amount payable or benefit to be provided under this Policy constitutes a nonexempt “nonqualified deferred compensation plan” (as defined in Section 409A of the Code) upon a Separation from Service, and to the extent a Participant is deemed to be a “specified employee” (as that term is defined in Section 409A of the Code and pursuant to procedures established by the Company) on the Date of Termination, notwithstanding any other provision in this Policy to the contrary, such payment or benefit provision will not be made to the Participant during the six month period immediately following the Date of Termination. Instead, on the first day of the seventh month following the Date of Termination, all amounts that otherwise would have been paid or provided to the Participant during the six month period, but were not paid or provided because of this Section 7.2, will be paid or provided to the Participant at such time without interest. This six month delay will cease to be applicable if the Participant incurs a Separation from Service due to death or if the Executive dies before the six month period has expired.

8.Withholding Taxes. All compensation payable pursuant to this Policy shall be subject to reduction by all applicable withholding, social security and other federal, state and local taxes and deductions, and the Company shall be authorized to make all such withholdings to the extent it determines necessary under applicable law.

9.Acknowledgment. The Participant acknowledges that this Policy does not constitute a contract of employment or impose on the Company any obligation to retain Participant as an employee and that this Policy does not prevent the Participant from terminating employment at any time.

10.Non-Duplication of Benefits. The severance benefit under this Policy is not intended to duplicate any other benefits provided by the Company in connection with the termination of an employee’s employment, such as wage replacement benefits, pay-in-lieu-of-notice, severance pay, or similar benefits under any other benefit plans, severance programs, employment contracts, or applicable federal or state laws, such as the WARN Acts. Should such other benefits be payable, the severance benefit under this Policy will be reduced accordingly or, alternatively, severance benefits previously paid under this Policy will be treated as having been paid to satisfy such other benefit obligations. In either case, the Company will determine how to apply this provision and may override other provisions in this Policy in doing so. In addition, and notwithstanding anything else provided herein, to the extent Participant is or becomes entitled to severance payments and benefits upon termination of employment pursuant to an individual agreement with the Company, this Policy will cease to apply and the Participant’s entitlement to severance benefits shall be governed solely by the applicable individual agreement.

11.Administration. The Company is responsible for the administration of this Policy and shall have all powers and duties necessary to fulfill its responsibilities. The Company shall determine any and all questions of fact, resolve all questions of interpretation of the Policy which may arise, and exercise all other powers and discretion necessary to be exercised under the terms of the Policy which it is herein given or for which no contrary provision is made. The Company shall have full power and discretion to interpret the Policy and related documents, to resolve ambiguities, inconsistencies and omissions, to determine any question of fact, and to determine the rights and benefits, if any, of any Executive or other employee, in accordance with the provisions of the Policy. The Company’s decision with respect to any matter shall be final and binding on all parties

concerned. The validity of any such interpretation, construction, decision, or finding of fact shall not be given de novo review if challenged in court, by arbitration, or in any other forum, and shall be upheld unless clearly arbitrary or capricious. The Company may, from time to time, by action of its appropriate officers, delegate to designated persons or entities the right to exercise any of its powers or the obligation to carry out its duties under the Policy.

12.Claims Procedures.

12.1Initial Claims. A Participant who believes that he or she is entitled to a payment or benefit under the Policy that has not been provided may submit a written claim for benefits to the Compensation Committee within 60 days after the Participant's Qualifying Termination. Claims should be addressed and sent to the Company. If the Participant's claim is denied, in whole or in part, the Participant will be furnished with written notice of the denial within 90 days after the Compensation Committee's receipt of the Participant's written claim, unless special circumstances require an extension of time for processing the claim, in which case a period not to exceed 180 days will apply. If such an extension of time is required, written notice of the extension will be furnished to the Participant before the termination of the initial 90-day period and will describe the special circumstances requiring the extension and the date on which a decision is expected to be rendered. Written notice of the denial of the Participant's claim will contain the following information: (i) the specific reason or reasons for the denial of the Participant's claim; (ii) references to the specific Policy provisions on which the denial of the Participant's claim was based; (iii) a description of any additional information or material required by the Compensation Committee to reconsider the Participant's claim (to the extent applicable) and an explanation of why such material or information is necessary; and (iv) a description of the Policy's review procedures and time limits applicable to such procedures, including a statement of the Participant's right to bring a civil action under Section 502(a) of ERISA following a benefit claim denial on review.

12.2Appeal of Denied Claims. If the Participant's claim is denied and he or she wishes to submit a request for a review of the denied claim, the Participant or his or her authorized representative must follow the procedures described below:

(i)Upon receipt of the denied claim, the Participant (or his or her authorized representative) may file in writing with the Compensation Committee a request for review of the claim. This request for review must be filed no later than 60 days after the Participant has received written notification of the denial.

(ii)The Participant has the right to submit in writing to the Compensation Committee any comments, documents, records, or other information relating to his or her claim for benefits.

(iii)The Participant has the right to be provided with, upon request and free of charge, reasonable access to and copies of all pertinent documents, records, and other information that is relevant to his or her claim for benefits, other than information that is deemed by the Compensation Committee to be confidential or with respect to which the Compensation Committee desires to preserve attorney-client privilege, if applicable (collectively, the “Protected Information”).

(iv)The review of the denied claim will take into account all comments, documents, records, and other information that the Participant submitted relating to his or her claim, without regard to whether such information was submitted or considered in the initial denial of his or her claim.

12.3Compensation Committee's Response to Appeal. The Compensation Committee will provide the Participant with written notice of its decision within 60 days after the Committee's receipt of the Participant's written claim for review. There may be special circumstances requiring an extension of this 60-day period. In any such case, the Compensation Committee will notify the Participant in writing within the 60-day period, and the final decision will be made no later than 120 days after the Compensation Committee's receipt of the Participant's written claim for review. The Compensation Committee's decision on the Participant's claim for review will be communicated to the Participant in writing and will contain the following information: (i) the specific reason or reasons for the denial of the Participant's claim; (ii) reference to the specific Policy provisions on which the denial of the Participant's claim is based; (iii) a statement that the Participant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, the Policy and all documents, records, and other information relevant to his or her claim for benefits (other than the Protected Information); and (iv) a statement describing the Participant's right to bring an action under Section 502(a) of ERISA.

12.4Exhaustion of Administrative Remedies. The exhaustion of these claims procedures is mandatory for resolving every claim and dispute arising under the Policy. As to such claims and disputes, (a) no claimant shall be permitted to commence any legal action to recover benefits or to enforce or clarify rights under the Policy under Section 502 or Section 510 of ERISA or under any other provision of law, whether or not statutory, until these claims procedures have been exhausted in their entirety, and (b) in any such legal action, all explicit and implicit determinations by the Compensation Committee (including, but not limited to, determinations as to whether the claim, or a request for a review of a denied claim, was timely filed) shall be afforded the maximum deference permitted by law.

13.Amendment and Termination. Prior to the occurrence of a Change in Control, the Company reserves the right to amend or terminate this Policy at any time and in any manner, without consent or advance notice to Participants or other employees. No amendment or termination of the Policy shall affect the rights of an Executive whose Date of Termination has occurred prior to the date of such amendment or termination of the Policy and who remains entitled to severance payments or benefits under this Policy.

Exhibit A

Acknowledgment

I acknowledge that I received, read and understand the Broadstone Net Lease, Inc. Severance Protection Policy (the “Policy”), which supersedes all prior agreements, programs and arrangements with Broadstone Net Lease, Inc. and its subsidiaries, written or oral, relating to the subject matter hereof, including the terms of any offer letter agreements, as amended from time to time. In the event of any inconsistency, the terms of the Policy will govern. For the avoidance of doubt, the Policy will not have any impact on the treatment of any outstanding equity awards that I hold, which will continue to be treated in accordance with the terms and conditions set forth in the applicable award agreement or equity plan. I also acknowledge that the Policy extends additional benefits to me that are not covered under existing agreements, programs and arrangements. This Acknowledgement is not an employment contract or a guarantee of continued employment.

_______________________________________ ______________________________

Name: Date:

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

(Rule 13a-14(a)/15d-14(a) Certification)

I, Christopher J. Czarnecki, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Broadstone Net Lease, Inc. for the quarter ended

June 30, 2022;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 4, 2022	/s/ Christopher J. Czarnecki
	Christopher J. Czarnecki
	Chief Executive Officer and President
	(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

(Rule 13a-14(a)/15d-14(a) Certification)

I, Ryan M. Albano, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Broadstone Net Lease, Inc. for the quarter ended

June 30, 2022;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 4, 2022	/s/ Ryan M. Albano
	Ryan M. Albano
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(Section 1350 Certification)

In connection with the Quarterly Report on Form 10-Q of Broadstone Net Lease, Inc. (the “Company”) for the quarter ended June 30, 2022 (the “Second Quarter 10-Q”), and pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Christopher J. Czarnecki, Chief Executive Officer and President of the Company, certifies, to the best of his knowledge, that:

1.The Second Quarter 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); and

2.The information contained in the Second Quarter 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 4, 2022	/s/ Christopher J. Czarnecki
	Christopher J. Czarnecki
	Chief Executive Officer and President

The foregoing certification is being furnished solely to accompany the Quarterly Report pursuant to 18 U.S.C. Section 1350, and is not being filed for purposes of Section 18 of the Exchange Act, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(Section 1350 Certification)

In connection with the Quarterly Report on Form 10-Q of Broadstone Net Lease, Inc. (the “Company”) for the quarter ended June 30, 2022 (the “Second Quarter 10-Q”), and pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Ryan M. Albano, Executive Vice President and Chief Financial Officer of the Company, certifies, to the best of his knowledge, that:

1.The Second Quarter 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); and

2.The information contained in the Second Quarter 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 4, 2022	/s/ Ryan M. Albano
	Ryan M. Albano
	Executive Vice President and Chief Financial Officer

The foregoing certification is being furnished solely to accompany the Quarterly Report pursuant to 18 U.S.C. Section 1350, and is not being filed for purposes of Section 18 of the Exchange Act, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Aug. 02, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Registrant Name	BROADSTONE NET LEASE, INC.
Entity Central Index Key	0001424182
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		173,115,020
Entity Shell Company	false
Entity File Number	001-39529
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	26-1516177
Entity Address, Address Line One	800 Clinton Square
Entity Address, City or Town	Rochester
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	14604
City Area Code	585
Local Phone Number	287-6500
Document Quarterly Report	true
Document Transition Report	false
Title of 12(b) Security	Common Stock, $0.00025 par value
Trading Symbol	BNL
Security Exchange Name	NYSE

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets
Total accounted for using the operating method	$ 4,565,621	$ 4,205,191
Less accumulated depreciation	(479,952)	(430,141)
Accounted for using the operating method, net	4,085,669	3,775,050
Accounted for using the direct financing method	28,584	28,782
Accounted for using the sales-type method	571	571
Investment in rental property, net	4,114,824	3,804,403
Cash and cash equivalents	16,813	21,669
Accrued rental income	124,297	116,874
Tenant and other receivables, net	2,069	1,310
Prepaid expenses and other assets	22,916	17,275
Interest rate swap, assets	26,562
Goodwill	339,769	339,769
Intangible lease assets, net	316,119	303,642
Debt issuance costs – unsecured revolving credit facility, net	6,956	4,065
Leasing fees, net	9,117	9,641
Total assets	4,979,442	4,618,648
Liabilities and equity
Unsecured revolving credit facility	320,657	102,000
Mortgages, net	95,453	96,846
Unsecured term loans, net	587,098	646,671
Senior unsecured notes, net	844,178	843,801
Interest rate swap, liabilities		27,171
Accounts payable and other liabilities	42,923	38,038
Dividends payable	49,541	45,914
Accrued interest payable	6,086	6,473
Intangible lease liabilities, net	66,864	70,596
Total liabilities	2,012,800	1,877,510
Commitments and contingencies (See Note 18)
Broadstone Net Lease, Inc. stockholders' equity:
Preferred stock, $0.001 par value; 20,000 shares authorized, no shares issued or outstanding
Common stock, $0.00025 par value; 500,000 shares authorized, 172,023 and 162,383 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	43	41
Additional paid-in capital	3,125,377	2,924,168
Cumulative distributions in excess of retained earnings	(350,127)	(318,476)
Accumulated other comprehensive income (loss)	23,397	(28,441)
Total Broadstone Net Lease, Inc. stockholders’ equity	2,798,690	2,577,292
Non-controlling interests	167,952	163,846
Total equity	2,966,642	2,741,138
Total liabilities and equity	4,979,442	4,618,648
Land
Assets
Total accounted for using the operating method	731,208	655,374
Land Improvements
Assets
Total accounted for using the operating method	320,513	295,329
Buildings and Improvements
Assets
Total accounted for using the operating method	3,503,478	3,242,618
Equipment
Assets
Total accounted for using the operating method	$ 10,422	$ 11,870

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Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.00025	$ 0.00025
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	172,023,000	162,383,000
Common stock, shares outstanding	172,023,000	162,383,000

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Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues
Lease revenues, net	$ 98,013	$ 84,759	$ 191,854	$ 167,457
Operating expenses
Depreciation and amortization	35,511	31,225	69,801	61,938
Property and operating expense	4,696	4,572	9,740	9,177
General and administrative	9,288	8,655	18,116	19,288
Provision for impairment of investment in rental properties	1,380		1,380	2,012
Total operating expenses	50,875	44,452	99,037	92,415
Other income (expenses)
Interest income		6		11
Interest expense	(17,888)	(15,430)	(34,784)	(31,538)
Cost of debt extinguishment				(126)
Gain on sale of real estate	4,071	3,838	5,267	8,571
Income taxes	(401)	(301)	(813)	(714)
Change in fair value of earnout liability		(5,604)		(4,480)
Other income	2,632	4	1,506	14
Net income	35,552	22,820	63,993	46,780
Net income attributable to non-controlling interests	(2,036)	(1,606)	(3,719)	(3,343)
Net income attributable to Broadstone Net Lease, Inc.	$ 33,516	$ 21,214	$ 60,274	$ 43,437
Weighted average number of common shares outstanding
Weighted average number of common shares outstanding-Basic	169,555	146,119	166,698	145,728
Weighted average number of common shares outstanding-Diluted	180,256	157,430	177,346	157,115
Net earnings per share attributable to common stockholders
Earnings Per Share, Basic	$ 0.20	$ 0.14	$ 0.36	$ 0.30
Earnings Per Share, Diluted	$ 0.20	$ 0.14	$ 0.36	$ 0.30
Comprehensive income
Net income	$ 35,552	$ 22,820	$ 63,993	$ 46,780
Other comprehensive income
Change in fair value of interest rate swaps	18,772	(2,911)	53,733	25,769
Realized loss (gain) on interest rate swaps	695	(42)	1,354	(83)
Comprehensive income	55,019	19,867	119,080	72,466
Comprehensive income attributable to non-controlling interests	(3,151)	(1,399)	(6,941)	(5,212)
Comprehensive income attributable to Broadstone Net Lease, Inc.	$ 51,868	$ 18,468	$ 112,139	$ 67,254

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Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Common Stock Class A Common Stock	Additional Paid-in Capital	Cumulative Distributions in Excess of Retained Earnings	Accumulated Other Comprehensive Loss	Non-controlling Interests
Beginning Balance at Dec. 31, 2020	$ 2,479,081	$ 27	$ 9	$ 2,624,997	$ (259,673)	$ (66,255)	$ 179,976
Net income	23,960				22,223		1,737
Issuance of shares of common stock	233			233
Offering costs, discounts and commissions	(500)			(500)
Stock-based compensation, net	1,769			1,769
Retirement of shares of restricted common stock	(832)			(832)
Conversion of Class A common stock to shares of common stock		9	(9)
Conversion of OP Units to shares of common stock				606			(606)
Distributions declared	(39,653)				(36,690)		(2,963)
Change in fair value of interest rate swap agreements	28,680					26,602	2,078
Realized gain on interest rate swap agreements	(41)					(39)	(2)
Adjustment to non-controlling interests				(953)		1,008	(55)
Ending Balance at Mar. 31, 2021	2,492,697	36		2,625,320	(274,140)	(38,684)	180,165
Beginning Balance at Dec. 31, 2020	2,479,081	27	$ 9	2,624,997	(259,673)	(66,255)	179,976
Net income	46,780
Conversion of OP Units to shares of common stock	18,500			18,465
Change in fair value of interest rate swap agreements	25,769
Ending Balance at Jun. 30, 2021	2,723,508	40		2,890,131	(293,622)	(41,896)	168,855
Beginning Balance at Mar. 31, 2021	2,492,697	36		2,625,320	(274,140)	(38,684)	180,165
Net income	22,820				21,214		1,606
Issuance of shares of common stock	264,799	4		264,795
Offering costs, discounts and commissions	(11,013)			(11,013)
Stock-based compensation, net	951			951
Retirement of shares of restricted common stock	(309)			(309)
Conversion of OP Units to shares of common stock				17,859			(17,859)
Distributions declared	(43,484)				(40,696)		(2,788)
Change in fair value of interest rate swap agreements	(2,911)					(2,708)	(203)
Realized gain on interest rate swap agreements	(42)					(38)	(4)
Adjustment to non-controlling interests				(7,472)		(466)	7,938
Ending Balance at Jun. 30, 2021	2,723,508	40		2,890,131	(293,622)	(41,896)	168,855
Beginning Balance at Dec. 31, 2021	2,741,138	41		2,924,168	(318,476)	(28,441)	163,846
Net income	28,441				26,758		1,683
Issuance of shares of common stock	136,826	1		136,825
Offering costs, discounts and commissions	(2,218)			(2,218)
Stock-based compensation, net of one share of restricted stock forfeited	929			929
Retirement of shares of restricted common stock	(1,301)			(1,301)
Distributions declared	(48,115)				(45,270)		(2,845)
Change in fair value of interest rate swap agreements	34,961					32,893	2,068
Realized gain on interest rate swap agreements	659					620	39
Adjustment to non-controlling interests				(1,843)		(45)	1,888
Ending Balance at Mar. 31, 2022	2,891,320	42		3,056,560	(336,988)	5,027	166,679
Beginning Balance at Dec. 31, 2021	2,741,138	41		2,924,168	(318,476)	(28,441)	163,846
Net income	63,993
Conversion of OP Units to shares of common stock				0
Change in fair value of interest rate swap agreements	53,733
Ending Balance at Jun. 30, 2022	2,966,642	43		3,125,377	(350,127)	23,397	167,952
Beginning Balance at Mar. 31, 2022	2,891,320	42		3,056,560	(336,988)	5,027	166,679
Net income	35,552				33,516		2,036
Issuance of shares of common stock	69,421	1		69,420
Offering costs, discounts and commissions	(992)			(992)
Stock-based compensation, net of eight shares of restricted stock forfeited	1,381			1,381
Conversion of OP Units to shares of common stock				0
Distributions declared	(49,507)				(46,655)		(2,852)
Change in fair value of interest rate swap agreements	18,772					17,697	1,075
Realized gain on interest rate swap agreements	695					655	40
Adjustment to non-controlling interests				(992)		(18)	974
Ending Balance at Jun. 30, 2022	$ 2,966,642	$ 43		$ 3,125,377	$ (350,127)	$ 23,397	$ 167,952

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Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021
Issuance of OP units, number of units			248,000
Retirement shares of restricted common stock, shares		59,000	16,000	45,000
Number of OP units exchanged	0		1,127,000	38,000
Issuance of Share of restricted stock forfeited	8,000	1,000
Common Stock
Issuance of shares of common stock, shares	3,281,000	6,427,000	11,659,000	211,000
Number of shares converted				37,000,000
Issuance of shares common stock upon conversion of OP units			1,127,000	38,000
Distribution declared per share	$ 0.270	$ 0.265	$ 0.255	$ 0.250
Class A Common Stock
Issuance of shares common stock upon conversion of Class A common stock				37,000,000

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating activities
Net income	$ 63,993	$ 46,780
Adjustments to reconcile net income including non-controlling interests to net cash provided by operating activities:
Depreciation and amortization including intangibles associated with investment in rental property	67,476	60,570
Provision for impairment of investment in rental properties	1,380	2,012
Amortization of debt issuance costs charged to interest expense	1,704	1,799
Stock-based compensation expense	2,310	2,720
Straight-line rent, financing and sales-type lease adjustments	(8,513)	(9,609)
Cost of debt extinguishment		126
Gain on sale of real estate	(5,267)	(8,571)
Change in fair value of earnout liability		4,480
Other non-cash items	628	139
Changes in assets and liabilities, net of acquisition:
Tenant and other receivables	(326)	986
Prepaid expenses and other assets	1,040	1,088
Accounts payable and other liabilities	(6,079)	(3,367)
Accrued interest payable	(387)	(138)
Net cash provided by operating activities	117,959	99,015
Investing activities
Acquisition of rental property accounted for using the operating method	(377,966)	(284,300)
Capital expenditures and improvements	(18,289)	(1,336)
Proceeds from disposition of rental property, net	16,402	43,144
Change in deposits on investments in rental property	(118)	(220)
Net cash used in investing activities	(379,971)	(242,712)
Financing activities
Proceeds from issuance of common stock, net of $3,229 and $10,842 offering costs, discounts, and commissions in 2022 and 2021, respectively	202,628	253,647
Principal payments on mortgages and unsecured term loans	(61,389)	(51,593)
Borrowings on unsecured revolving credit facility	380,783	175,600
Repayments on unsecured revolving credit facility	(161,000)	(175,600)
Cash distributions paid to stockholders	(88,361)	(73,278)
Cash distributions paid to non-controlling interests	(5,647)	(5,927)
Cash paid for earnout liability		(1,926)
Debt issuance and extinguishment costs paid	(3,795)	(946)
Net cash (used in) provided by financing activities	263,219	119,977
Net increase (decrease) in cash and cash equivalents and restricted cash	1,207	(23,720)
Cash and cash equivalents and restricted cash at beginning of period	27,769	110,728
Cash and cash equivalents and restricted cash at end of period	28,976	87,008
Reconciliation of cash and cash equivalents and restricted cash
Cash and cash equivalents at beginning of period	21,669	100,486
Restricted cash at beginning of period	6,100	10,242
Cash and cash equivalents and restricted cash at beginning of period	27,769	110,728
Cash and cash equivalents at end of period	16,813	78,987
Restricted cash at end of period	12,163	8,021
Cash and cash equivalents and restricted cash at end of period	$ 28,976	$ 87,008

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Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Offering costs,discounts, and commissions	$ 3,229	$ 10,842

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Business Description

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business Description

1. Business Description

Broadstone Net Lease, Inc. (the "Corporation") is a Maryland corporation formed on October 18, 2007, that elected to be taxed as a real estate investment trust ("REIT") commencing with the taxable year ended December 31, 2008. The Corporation focuses on investing in income-producing, net leased commercial properties, primarily in the United States. The Corporation leases industrial, healthcare, restaurant, retail, and office commercial properties under long-term lease agreements. At June 30, 2022, the Corporation owned a diversified portfolio of 764 individual commercial properties with 757 properties located in 44 U.S. states and seven properties located in four Canadian provinces.

Broadstone Net Lease, LLC (the Corporation's operating company, or the "OP"), is the entity through which the Corporation conducts its business and owns (either directly or through subsidiaries) all of the Corporation's properties. The Corporation is the sole managing member of the OP. The membership units not owned by the Corporation are referred to as OP Units or non-controlling interests. As the Corporation conducts substantially all of its operations through the OP, it is structured as what is referred to as an umbrella partnership real estate investment trust ("UPREIT"). The Corporation, the OP, and its consolidated subsidiaries are collectively referred to as the "Company."

Pursuant to the Corporation's initial public offering ("IPO"), a new class of common stock ("Class A Common Stock") was issued. On March 20, 2021, each share of Class A Common Stock automatically converted into one share of common stock, and effective March 22, 2021, all shares of common stock were listed and freely tradeable on the NYSE under the symbol "BNL."

The following table summarizes the outstanding equity and economic ownership interest of the Corporation and the OP:

	June 30, 2022									December 31, 2021
(in thousands)	Shares of Common Stock			OP Units			Total Diluted Shares			Shares of Common Stock			OP Units			Total Diluted Shares
Ownership interest		172,023			10,323			182,346			162,383			10,323			172,706
Percent ownership of OP		94.3	%		5.7	%		100.0	%		94.0	%		6.0	%		100.0	%

Refer to Note 16 for further discussion regarding the calculation of weighted average shares outstanding.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Interim Information

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information (Accounting Standards Codification ("ASC") 270, Interim Reporting) and Article 10 of the Securities and Exchange Commission's ("SEC") Regulation S-X. Accordingly, the Corporation has omitted certain footnote disclosures which would substantially duplicate those contained within the audited consolidated financial statements for the year ended December 31, 2021, included in the Company's 2021 Annual Report on Form 10-K, filed with the SEC on February 23, 2022. Therefore, the readers of this quarterly report should refer to those audited consolidated financial statements, specifically Note 2, Summary of Significant Accounting Policies, for further discussion of significant accounting policies and estimates. The Corporation believes all adjustments necessary for a fair presentation have been included in these interim Condensed Consolidated Financial Statements (which include only normal recurring adjustments).

Principles of Consolidation

The Condensed Consolidated Financial Statements include the accounts and operations of the Company. All intercompany balances and transactions have been eliminated in consolidation.

To the extent the Corporation has a variable interest in entities that are not evaluated under the variable interest entity ("VIE") model, the Corporation evaluates its interests using the voting interest entity model. The Corporation has complete responsibility for the day-to-day management of, authority to make decisions for, and control of the OP. Based on consolidation guidance, the Corporation has concluded that the OP is a VIE as the members in the OP do not possess kick-out rights or substantive participating rights. Accordingly, the Corporation consolidates its interest in the OP. However, because the Corporation holds the majority voting interest in the OP and certain other conditions are met, it qualifies for the exemption from providing certain disclosure requirements associated with investments in VIEs.

The portion of the OP not owned by the Corporation is presented as non-controlling interests as of and during the periods presented.

Basis of Accounting

The Condensed Consolidated Financial Statements have been prepared in accordance with GAAP.

Use of Estimates

The preparation of Condensed Consolidated Financial Statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include, but are not limited to, the allocation of purchase price between tangible and intangible assets acquired and liabilities assumed, the value of long-lived assets and goodwill, the provision for impairment, the depreciable lives of rental property, the amortizable lives of intangible assets and liabilities, the probability of collecting outstanding and future lease payments, the fair value of the earnout liability, the fair value of assumed debt, the fair value of the Company's interest rate swap agreements, and the determination of any uncertain tax positions. Accordingly, actual results may differ from those estimates.

Long-lived Asset Impairment

The Company reviews long-lived assets to be held and used for possible impairment when events or changes in circumstances indicate that their carrying amounts may not be recoverable. If, and when, such events or changes in circumstances are present, an impairment exists to the extent the carrying value of the long-lived asset or asset group exceeds the sum of the undiscounted cash flows expected to result from the use of the long-lived asset or asset group and its eventual disposition. Such cash flows include expected future operating income, as adjusted for trends and prospects, as well as the effects of demand, competition, and other factors. An impairment loss is measured as the amount by which the carrying amount of the long-lived asset or asset group exceeds its fair value. Significant judgment is made to determine if and when impairment should be taken. The Company's assessment of impairment as of June 30, 2022 and 2021 was based on the most current information available to the Company. Certain of the Company's properties may have fair values less than their carrying amounts. However, based on the Company's plans with respect to each of those properties, the Company believes that their carrying amounts are recoverable and therefore, no impairment charges were recognized other than those described below. If the operating conditions mentioned above deteriorate or if the Company's expected holding period for assets changes, subsequent tests for impairments could result in additional impairment charges in the future.

Inputs used in establishing fair value for real estate assets generally fall within Level 3 of the fair value hierarchy, which are characterized as requiring significant judgment as little or no current market activity may be available for validation. The main indicator used to establish the classification of the inputs is current market conditions, as derived through the use of published commercial real estate market information. The Company determines the valuation of impaired assets using generally accepted valuation techniques including discounted cash flow analysis, income capitalization, analysis of recent comparable sales transactions, actual sales negotiations, and bona fide purchase offers received from third parties. Management may consider a single valuation technique or multiple valuation techniques, as appropriate, when estimating the fair value of its real estate.

The following table summarizes the Company's impairment charges, resulting primarily from changes in the Company's long-term hold strategy, with respect to the individual properties:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands, except number of properties)	2022		2021		2022		2021
Number of properties		1		—		1		1
Impairment charge	$	1,380	$	—	$	1,380	$	2,012

Restricted Cash

Restricted cash includes escrow funds the Company maintains pursuant to the terms of certain mortgages, lease agreements, and undistributed proceeds from the sale of properties under Section 1031 of the Internal Revenue Code of 1986, as amended (the "Code"), and is reported within Prepaid expenses and other assets on the Condensed Consolidated Balance Sheets. Restricted cash consisted of the following:

	June 30,		December 31,
(in thousands)	2022		2021
Escrow funds and other	$	6,634	$	6,100
Undistributed 1031 proceeds		5,529		—
	$	12,163	$	6,100

Rent Received in Advance

Rent received in advance represents tenant payments received prior to the contractual due date, and is included in Accounts payable and other liabilities on the Condensed Consolidated Balance Sheets. Rent received in advance consisted of the following:

(in thousands)	June 30, 2022		December 31, 2021
Rent received in advance	$	13,533	$	15,162

Fair Value Measurements

Recurring Fair Value Measurements

The balances of financial instruments measured at fair value on a recurring basis are as follows (see Note 11):

	June 30, 2022
(in thousands)	Total		Level 1		Level 2		Level 3
Interest rate swap, assets	$	26,562	$	—	$	26,562	$	—

	December 31, 2021
(in thousands)	Total			Level 1		Level 2			Level 3
Interest rate swap, liabilities	$	(27,171	)	$	—	$	(27,171	)	$	—

Long-term Debt – The fair value of the Company's debt was estimated using Level 1, Level 2, and Level 3 inputs based on recent secondary market trades of the Company's 2031 Senior Unsecured Public Notes (see Note 9), recent financing transactions, estimates of the fair value of the property that serves as collateral for such debt, historical risk premiums for loans of comparable quality, current London Interbank Offered Rate ("LIBOR"), U.S. Treasury obligation interest rates, and discounted estimated future cash payments to be made on such debt. The discount rates estimated reflect the Company's judgment as to the approximate current lending rates for loans or groups of loans with similar maturities and assumes that the debt is outstanding through maturity. Market information, as available, or present value techniques were utilized to estimate the amounts required to be disclosed. Since such amounts are estimates that are based on limited available market information for similar transactions and do not acknowledge transfer or other repayment restrictions that may exist on specific loans, it is unlikely that the estimated fair value of any such debt could be realized by immediate settlement of the obligation.

The following table summarizes the carrying amount reported on the Condensed Consolidated Balance Sheets and the Company's estimate of the fair value of the unsecured revolving credit facility, mortgages, unsecured term loans, and senior unsecured notes which reflects the fair value of interest rate swaps:

(in thousands)	June 30, 2022		December 31, 2021
Carrying amount	$	1,856,377	$	1,699,160
Fair value		1,758,160		1,785,701

Non-recurring Fair Value Measurements

The Company's non-recurring fair value measurements at June 30, 2022 and December 31, 2021 consisted of the fair value of impaired real estate assets that were determined using Level 3 inputs.

Stock-Based Compensation

The Company has issued restricted stock awards ("RSAs") and performance-based restricted stock units ("PRSUs") under its 2020 Omnibus Equity and Incentive Plan (the "Equity Incentive Plan"). Subject to any adjustment as provided in the Equity Incentive Plan, up to 9,000,000 shares may be issued to awards granted under the Equity Incentive Plan. The Company accounts for stock-based incentives in accordance with ASC 718, Compensation – Stock Compensation, which requires that such compensation be recognized in the financial statements based on the award's estimated grant date fair value. The value of such awards is recognized as compensation expense in General and administrative expenses in the Condensed Consolidated Statements of Income and Comprehensive Income over the appropriate vesting period on a straight-line basis or at the cumulative amount vested at each balance sheet date, if greater. The Company records forfeitures during the period in which they occur by reversing all previously recorded stock compensation expense associated with the forfeited shares. Dividends declared on RSAs issued under the Equity Incentive Plan are recorded as Cumulative distributions in excess of retained earnings on the Condensed Consolidated Balance Sheets. Accumulated dividends related to forfeited RSAs are reversed through compensation expense in the period the forfeiture occurs. Dividends accrued on the PRSUs are recorded as Cumulative distributions in excess of retained earnings on the Condensed Consolidated Balance Sheets. Accumulated dividends accrued related to forfeited PRSUs are reversed in the period the forfeiture occurs.

Recently Adopted Accounting Standards

In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. The guidance in ASU 2020-06 simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separately present certain conversion features in equity. In addition, the amendments in ASU 2020-06 also simplify the guidance in ASC Subtopic 815-40, Derivatives and Hedging: Contracts in Entity's Own Equity, by removing certain criteria that must be satisfied in order to classify a contract as equity, which is expected to decrease the number of freestanding instruments and embedded derivatives accounted for as assets or liabilities. Finally, the amendments revise the guidance on calculating earnings per share, requiring use of the if-converted method for all convertible instruments. The amendments in ASU 2020-06 were effective for the Company beginning January 1, 2022. The Company uses the two-class method of computing basic and diluted earnings per share. Based on the nature of the Company's potentially dilutive instruments, the treasury stock method is not used in computing dilutive earnings per share. Accordingly, the adoption of ASU 2020-06 did not have a material impact on the Company.

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Related-Party Transactions

6 Months Ended

Jun. 30, 2022

Related Party Transactions [Abstract]

Related-Party Transactions

3. Related-Party Transactions

Prior to the Company's internalization on February 7, 2020, the Company was externally managed by Broadstone Real Estate, LLC ("BRE") and Broadstone Asset Management, LLC (the "Asset Manager") subject to the direction, oversight, and approval of the Company's board of directors (the "Board of Directors"). As part of the internalization the Asset Manager and BRE merged into the Company. Accordingly, both BRE and the Asset Manager were related parties of the Company.

Earnout Consideration

In connection with the Company's internalization, the Company incurred a contingent obligation that would be payable to certain members of the Board of Directors and employees who had previously been owners and/or employees of BRE, upon the occurrence of certain events (see Note 4). On June 16, 2021, the Company achieved the earnout milestone applicable to tranche 1 of the earnout. As a result, the Company issued 145,195 shares of common stock, 247,899 OP Units and paid $1.9 million of cash during the three and six months ended June 30, 2021. The Company achieved the remaining volume-weighted average price ("VWAP") milestones and paid all earnout tranches (see Note 4) during the year ended December 31, 2021. As such, there was no such activity during the three and six months ended June 30, 2022.

Conversion of OP Units to Common Stock

During the three and six months ended June 30, 2021, in a non-cash transaction (see Note 17), the Company converted 1,019,874 OP Units held by an affiliated third party to 1,019,874 shares of common stock at a total conversion value of $16.2 million. There were no OP Units converted to common stock during the three and six months ended June 30, 2022.

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Internalization

6 Months Ended

Jun. 30, 2022

Internalization [Abstract]

Internalization

4. Internalization

On February 7, 2020, the Company completed an internalization where the Company's management team and corporate staff, who were previously employed by BRE, became employees of an indirect subsidiary of the OP. The effect of the internalization has been reflected in the Company's operating results beginning on February 7, 2020.

In accordance with the Company's internalization, the Company was required to pay additional earnout consideration of up to $75.0 million payable in four tranches of $10.0 million, $15.0 million, $25.0 million, and $25.0 million if certain milestones related to the 40-day volume-weighted average price of a share of the Company's common stock ("VWAP per REIT Share") were achieved. The consideration consisted of a combination of cash, shares of the Company's common stock, and OP Units, based on the same proportions paid in the base consideration.

As of December 31, 2021, the Company achieved all four VWAP milestones, thereby triggering the payout of all earnout tranches. Below is a summary of the shares of common stock and OP Units issued, and cash paid for each earnout tranche:

(in thousands, except per share amounts)
	Shares of							40-Day
	Common Stock		OP Units					VWAP of a
Tranche	Issued		Issued		Cash Paid			REIT Share		Achievement Date
1		145		248	$	1,926	(a)	$	22.50	June 16, 2021
2		218		371		2,888	(a)		23.75	July 14, 2021
3		363		620		4,117			24.375	September 21, 2021
4		363		620		4,117			25.00	September 21, 2021

(a)Cash payments include amounts earned for dividends.

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Acquisitions of Rental Property

6 Months Ended

Jun. 30, 2022

Business Combinations [Abstract]

Acquisitions of Rental Property

5. Acquisitions of Rental Property

The Company closed on the following acquisitions during the six months ended June 30, 2022:

(in thousands, except number of properties)		Number of		Real Estate
Date	Property Type	Properties		Acquisition Price
January 7, 2022	Retail		2	$	2,573
February 10, 2022	Industrial		1		21,733
February 15, 2022	Retail		1		1,341
February 28, 2022	Industrial		1		5,678
March 4, 2022	Retail		6		79,061
March 31, 2022	Restaurant		16		99,587
April 12, 2022	Retail		1		1,680
April 12, 2022	Industrial		1		7,522
April 13, 2022	Industrial		1		16,250
April 19, 2022	Retail		1		1,780
May 16, 2022	Retail		1		2,264
June 7, 2022	Retail		1		11,510
June 13, 2022	Retail		1		1,638
June 15, 2022	Retail		1		1,884
June 21, 2022	Industrial		5		78,500
June 29, 2022	Healthcare		1		12,467
June 30, 2022	Industrial		1		29,500
			42	$	374,968	(a)

(a)Acquisition price excludes capitalized acquisition costs of $3.1 million and a $17.4 million building expansion agreed to as a forward commitment in connection with a prior acquisition (see Note 18).

The Company closed on the following acquisitions during the six months ended June 30, 2021:

(in thousands, except number of properties)		Number of		Real Estate
Date	Property Type	Properties		Acquisition Price
February 5, 2021	Healthcare		1	$	4,843
February 26, 2021	Restaurant	(b)			181
March 11, 2021	Retail		13		26,834
March 30, 2021	Retail		11		41,324
March 31, 2021	Healthcare		3		14,140
June 4, 2021	Retail		2		19,420
June 9, 2021	Industrial		1		8,500
June 9, 2021	Industrial		11		106,578
June 25, 2021	Retail		8		12,131
June 28, 2021	Healthcare		4		15,300
June 30, 2021	Retail		1		1,279
June 30, 2021	Healthcare		7		30,750
			62	$	281,280	(c)

(b)Acquisition of additional land adjacent to an existing property.

(c)Acquisition price excludes capitalized acquisition costs of $3.0 million.

The Company allocated the purchase price of these properties to the fair value of the assets acquired and liabilities assumed. The following table summarizes the purchase price allocation for completed real estate acquisitions:

	For the Six Months Ended June 30,
(in thousands)	2022				2021
Land	$	77,088			$	48,477
Land improvements		26,002				15,844
Buildings and improvements		253,500				197,064
Acquired in-place leases(d)		29,585				22,729
Acquired above-market lease (e)		—				211
Acquired below-market lease (f)		(76	)			—
Non-real estate liabilities assumed		(8,051	)			—
	$	378,048		(g)	$	284,325

(d)The weighted average amortization period for acquired in-place leases is 20 years and 14 years for acquisitions completed during the six months ended June 30, 2022 and 2021, respectively.

(e)The weighted average amortization period for the acquired above-market leases is 10 years for acquisitions completed during the six months ended June 30, 2021. There were no above-market leases acquired during the six months ended June 30, 2022.

(f)The weighted average amortization period for acquired below-market leases is nine years for acquisitions completed during the six months ended June 30, 2022. There were no below-market leases acquired during the six months ended June 30, 2021.

(g)Excludes $17.4 million building expansion agreed to as a forward commitment in connection with a prior acquisition (see Note 18).

The above acquisitions were funded using a combination of available cash on hand, and proceeds from equity issuances and revolving credit facility borrowings. All real estate acquisitions closed during the six months ended June 30, 2022 and 2021, qualified as asset acquisitions and, as such, acquisition costs have been capitalized.

Subsequent to June 30, 2022, the Company closed on the following acquisitions (see Note 19):

(in thousands, except number of properties)		Number of		Real Estate
Date	Property Type	Properties		Acquisition Price
July 1, 2022	Retail		2	$	3,052
July 7, 2022	Retail		1		2,171
July 8, 2022	Industrial		11		75,000
			14	$	80,223

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Sale of Real Estate

6 Months Ended

Jun. 30, 2022

Real Estate [Abstract]

Sale of Real Estate

6. Sale of Real Estate

The Company closed on the following sales of real estate, none of which qualified as discontinued operations:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(in thousands, except number of properties)	2022			2021			2022			2021
Number of properties disposed		3			11			4			19
Aggregate sale price	$	11,889		$	22,276		$	17,101		$	45,338
Aggregate carrying value		(7,311	)		(17,201	)		(11,135	)		(34,573	)
Additional sales expenses		(507	)		(1,237	)		(699	)		(2,194	)
Gain on sale of real estate	$	4,071		$	3,838		$	5,267		$	8,571

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Investment in Rental Property and Lease Arrangements

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Investment in Rental Property and Lease Arrangements

7. Investment in Rental Property and Lease Arrangements

The Company generally leases its investment rental property to established tenants in the industrial, healthcare, restaurant, retail, and office property types. At June 30, 2022, the Company had 764 real estate properties, 751 of which were leased under leases that have been classified as operating leases, 10 that have been classified as direct financing leases, one that has been classified as a sales-type lease, and two that were vacant. Of the 10 leases classified as direct financing leases, three include land portions which are accounted for as operating leases. The sales-type lease includes a land portion which is accounted for as an operating lease. Most leases have initial terms of 10 to 20 years. The Company's leases generally provide for limited increases in rent as a result of fixed increases, increases in the Consumer Price Index ("CPI"), or increases in the tenant's sales volume. Generally, tenants are also required to pay all property taxes and assessments, substantially maintain the interior and exterior of the building, and maintain property and liability insurance coverage. The leases also typically provide for one or more multiple year renewal options, at the election of the tenant, and are subject to generally the same terms and conditions as the initial lease.

Investment in Rental Property – Accounted for Using the Operating Method

Depreciation expense on investment in rental property was as follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Depreciation	$	27,730	$	24,144	$	54,388	$	47,887

Estimated lease payments to be received under non-cancelable operating leases with tenants at June 30, 2022 are as follows:

(in thousands)
Remainder of 2022	$	178,218
2023		359,960
2024		357,102
2025		350,807
2026		341,436
Thereafter		2,695,940
	$	4,283,463

Since lease renewal periods are exercisable at the option of the tenant, the above amounts only include future lease payments due during the initial lease terms. Such amounts exclude any potential variable rent increases that are based on changes in the CPI or future variable rents which may be received under the leases based on a percentage of the tenant's gross sales. Additionally, certain of our leases provide tenants with the option to terminate their leases in exchange for termination penalties, or that are contingent upon the occurrence of a future event. Future lease payments within the table above have not been adjusted for these termination rights.

Investment in Rental Property – Direct Financing Leases

The Company's net investment in direct financing leases was comprised of the following:

(in thousands)	June 30, 2022			December 31, 2021
Undiscounted estimated lease payments to be received	$	40,983		$	42,602
Estimated unguaranteed residual values		15,203			15,203
Unearned revenue		(27,473	)		(28,893	)
Reserve for credit losses		(129	)		(130	)
Net investment in direct financing leases	$	28,584		$	28,782

Undiscounted estimated lease payments to be received under non-cancelable direct financing leases with tenants at June 30, 2022 are as follows:

(in thousands)
Remainder of 2022	$	1,622
2023		3,304
2024		3,361
2025		3,475
2026		3,547
Thereafter		25,674
	$	40,983

The above rental receipts do not include future lease payments for renewal periods, potential variable CPI rent increases, or variable percentage rent payments that may become due in future periods.

The following table summarizes amounts reported as Lease revenues, net on the Condensed Consolidated Statements of Income and Comprehensive Income:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(in thousands)	2022			2021			2022			2021
Contractual rental amounts billed for operating leases	$	87,505		$	75,011		$	171,901		$	148,256
Adjustment to recognize contractual operating lease billings on a    straight-line basis		5,090			4,724			10,111			9,533
Net write-offs of accrued rental income		—			—			(1,326	)		(442	)
Variable rental amounts earned		291			114			477			205
Earned income from direct financing leases		721			728			1,444			1,458
Interest income from sales-type leases		15			15			29			29
Operating expenses billed to tenants		4,263			4,196			8,998			8,584
Other income from real estate transactions		134			28			176			33
Adjustment to revenue recognized for uncollectible rental    amounts billed, net		(6	)		(57	)		44			(199	)
Total lease revenues, net	$	98,013		$	84,759		$	191,854		$	167,457

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Intangible Assets And Liabilities

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Liabilities

8. Intangible Assets and Liabilities

The following is a summary of intangible assets and liabilities and related accumulated amortization:

(in thousands)	June 30, 2022			December 31, 2021
Lease intangibles:
Acquired above-market leases	$	46,772		$	47,147
Less accumulated amortization		(18,052	)		(16,807	)
Acquired above-market leases, net		28,720			30,340
Acquired in-place leases		407,993			380,766
Less accumulated amortization		(120,594	)		(107,464	)
Acquired in-place leases, net		287,399			273,302
Total intangible lease assets, net	$	316,119		$	303,642
Acquired below-market leases	$	105,293		$	105,310
Less accumulated amortization		(38,429	)		(34,714	)
Intangible lease liabilities, net	$	66,864		$	70,596
Leasing fees	$	14,650		$	14,786
Less accumulated amortization		(5,533	)		(5,145	)
Leasing fees, net	$	9,117		$	9,641

Amortization of intangible lease assets and liabilities was as follows:

(in thousands)		For the Three Months Ended June 30,				For the Six Months Ended June 30,
Intangible	Financial Statement Presentation	2022		2021		2022		2021
Acquired in-place leases and leasing fees	Depreciation and amortization	$	7,749	$	7,058	$	15,350	$	14,005
Above-market and below-market leases	Lease revenues, net		1,170		665		2,331		1,418

Estimated future amortization of intangible assets and liabilities at June 30, 2022 is as follows:

(in thousands)
Remainder of 2022	$	13,338
2023		26,512
2024		25,752
2025		24,455
2026		23,105
Thereafter		145,210
	$	258,372

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Unsecured Credit Agreements

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Unsecured Credit Agreements

9. Unsecured Credit Agreements

The following table summarizes the Company's unsecured credit agreements:

	Outstanding Balance
(in thousands, except interest rates)	June 30, 2022			December 31, 2021			Interest Rate	Maturity Date
Unsecured revolving    credit facility	$	320,657		$	102,000		Applicable reference rate + 0.85% (a) (b) (c)	Mar. 2026
Unsecured term loans:
2022 Unsecured Term Loan		—			60,000		one-month LIBOR + 1.00% (c)	Feb. 2022 (d)
2024 Unsecured Term Loan		190,000			190,000		one-month LIBOR + 1.00% (c)	Jun. 2024
2026 Unsecured Term Loan		400,000			400,000		one-month LIBOR + 1.00% (c)	Feb. 2026
Total unsecured term loans		590,000			650,000
Unamortized debt issuance costs, net		(2,902	)		(3,329	)
Total unsecured term loans, net		587,098			646,671
Senior unsecured notes:
2027 Senior Unsecured Notes -    Series A		150,000			150,000		4.84%	Apr. 2027
2028 Senior Unsecured Notes -    Series B		225,000			225,000		5.09%	Jul. 2028
2030 Senior Unsecured Notes -    Series C		100,000			100,000		5.19%	Jul. 2030
2031 Senior Unsecured Public Notes		375,000			375,000		2.60%	Sep. 2031
Total senior unsecured notes		850,000			850,000
Unamortized debt issuance costs and    original issuance discount, net		(5,822	)		(6,199	)
Total senior unsecured notes, net		844,178			843,801
Total unsecured debt, net	$	1,751,933		$	1,592,472

(a)At June 30, 2022, a balance of $243.0 million was subject to the one-month Secured Overnight Financing Rate of 1.69%. The remaining balance includes $100 million CAD borrowings remeasured to $77.7 million USD, which was subject to the one-month Canadian Dollar Offered Rate of 2.23%.

(b)At December 31, 2021, interest rate was one-month LIBOR plus 1.00%

(c)At June 30, 2022 and December 31, 2021, one-month LIBOR was 1.79% and 0.10%, respectively.

(d)The 2022 Unsecured Term Loan was paid in full in February 2022, with borrowings from the unsecured revolving credit facility.

At June 30, 2022, the weighted average interest rate on all outstanding borrowings was 3.33%, exclusive of interest rate swap agreements.

The Company is subject to various financial and operational covenants and financial reporting requirements pursuant to its unsecured credit agreements. These covenants require the Company to maintain certain financial ratios, including leverage, fixed charge coverage, debt service coverage, aggregate debt ratio, consolidated income available for debt to annual debt service charge, total unencumbered assets to total unsecured debt, and secured debt ratio, among others. As of June 30, 2022, and for all periods presented the Company believes it was in compliance with all of its loan covenants. Failure to comply with the covenants would result in a default which, if the Company were unable to cure or obtain a waiver from the lenders, could accelerate the repayment of the obligations. Further, in the event of default, the Company may be restricted from paying dividends to its stockholders in excess of dividends required to maintain its REIT qualification. Accordingly, an event of default could have a material and adverse impact on the Company.

On January 28, 2022, the Company amended and restated the unsecured revolving credit facility to increase the available borrowings to $1.0 billion and extend the maturity date to March 31, 2026. In addition to USD, borrowings under the unsecured revolving credit facility can be made in Pound Sterling, Euros or Canadian Dollars ("CAD") up to an aggregate amount of $500.0 million. Prior to the amendment, borrowings under the credit facility were subject to interest at variable rates based on LIBOR plus a margin based on the Company's current credit rating ranging between 0.825% to 1.55% per annum. Borrowings under the amended credit facility are subject to interest only payments at variable rates equal to the applicable reference rate plus a margin based on the Company's credit rating, ranging between 0.725% and 1.400%. In addition, the amended credit facility is subject to a facility fee on the amount of the revolving commitments, based on the Company's credit rating. The applicable facility fee is 0.200% per annum.

For the six months ended June 30, 2022, the Company incurred $3.8 million in debt issuance costs associated with the unsecured revolving credit facility. For the six months ended June 30, 2021, the Company incurred $1.0 million in debt issuance costs associated with the amended 2026 Unsecured Term Loan. The Company did not incur debt issuance costs during the three months ended June 30, 2022 and 2021.

For each separate debt instrument, on a lender by lender basis, in accordance with ASC 470-50, Debt Modifications and Extinguishment, the Company performed an assessment of whether the transaction was deemed to be new debt, a modification of existing debt, or an extinguishment of existing debt. Debt issuance costs are either deferred and amortized over the term of the associated debt or expensed as incurred.

With respect to the unsecured revolving credit facility amendment, the transaction was deemed to be new debt and therefore, the debt issuance costs incurred during the six months ended June 30, 2022, have been deferred and are being amortized over the term of the associated debt. With respect to the amended 2026 Unsecured Term Loan, the transaction was deemed to be a modification of existing debt and therefore the $0.9 million of debt issuance costs paid to lenders were deferred and are being amortized over the term of the associated debt. The remaining debt issuance costs of $0.1 million were expensed as incurred during the six months ended June 30, 2021.

Debt issuance costs and original issuance discounts are amortized as a component of Interest expense in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income. The following table summarizes debt issuance cost and original issuance discount amortization:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Debt issuance costs and original issuance discount amortization	$	900	$	956	$	1,756	$	1,870

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Mortgages

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Mortgages

10. Mortgages

The Company's mortgages consist of the following:

	Origination	Maturity
(in thousands, except interest rates)	Date	Date	Interest	June 30,			December 31,
Lender	(Month/Year)	(Month/Year)	Rate	2022			2021
Wilmington Trust National Association	Apr-19	Feb-28	4.92%	$	46,142		$	46,760		(a) (b) (c) (d)
Wilmington Trust National Association	Jun-18	Aug-25	4.36%		19,355			19,557		(a) (b) (c) (e)
PNC Bank	Oct-16	Nov-26	3.62%		16,886			17,094		(b) (c)
T2 Durham I, LLC	Jul-21	Jul-24	Greater of Prime + 1.25% or 5.00%		7,500			7,500		(b) (f)
Aegon	Apr-12	Oct-23	6.38%		5,837			6,249		(b) (g)
Total mortgages					95,720			97,160
Debt issuance costs, net					(267	)		(314	)
Mortgages, net				$	95,453		$	96,846

(a)Non-recourse debt includes the indemnification/guaranty of the Corporation and/or OP pertaining to fraud, environmental claims, insolvency, and other matters.

(b)Debt secured by related rental property and lease rents.

(c)Debt secured by guaranty of the OP.

(d)Mortgage was assumed in April 2019 as part of the acquisition of the related property. The debt was recorded at fair value at the time of assumption.

(e)Mortgage was assumed in June 2018 as part of the acquisition of the related property. The debt was recorded at fair value at the time of assumption.

(f)Mortgage is subject to interest at a daily floating annual rate equal to the Prime Rate plus 1.25%, but no less than 5.00% per annum. At June 30, 2022 and December 31, 2021, the interest rate was 6.00% and 5.00%, respectively.

(g)Mortgage was assumed in April 2012 as part of the acquisition of the related property. The debt was recorded at fair value at the time of the assumption.

At June 30, 2022, investment in rental property of $159.5 million was pledged as collateral against the Company's mortgages.

Estimated future principal payments to be made under the above mortgages and the Company's unsecured credit agreements (see Note 9) at June 30, 2022 are as follows:

(in thousands)
Remainder of 2022	$	1,466
2023		7,582
2024		199,760
2025		20,195
2026		737,500
Thereafter		889,874
	$	1,856,377

Certain of the Company's mortgages provide for prepayment fees and can be terminated under certain events of default as defined under the related agreements. These prepayment fees are not reflected as part of the table above.

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Interest Rate Swaps

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest Rate Swaps

11. Interest Rate Swaps

Interest rate swaps were entered into with certain financial institutions in order to mitigate the impact of interest rate variability over the term of the related debt agreements. The interest rate swaps are considered cash flow hedges. In order to reduce counterparty concentration risk, the Company has a diversification policy for institutions that serve as swap counterparties. Under these agreements, the Company receives monthly payments from the counterparties on these interest rate swaps equal to the related variable interest rates multiplied by the outstanding notional amounts. Certain interest rate swaps amortize on a monthly basis. In turn, the Company pays the counterparties each month an amount equal to a fixed rate multiplied by the related outstanding notional amounts. The intended net impact of these transactions is that the Company pays a fixed interest rate on its variable-rate borrowings.

The following is a summary of the Company's outstanding interest rate swap agreements:

(in thousands, except interest rates)					June 30, 2022				December 31, 2021
Counterparty	Maturity Date	Fixed Rate			Notional Amount		Fair Value		Notional Amount		Fair Value
Wells Fargo Bank, N.A.	October 2024		2.72	%	$	15,000	$	110	$	15,000	$	(702	)
Capital One, National Association	December 2024		1.58	%		15,000		510		15,000		(241	)
Bank of Montreal	January 2025		1.91	%		25,000		672		25,000		(649	)
Truist Financial Corporation	April 2025		2.20	%		25,000		520		25,000		(905	)
Bank of Montreal	July 2025		2.32	%		25,000		459		25,000		(1,049	)
Truist Financial Corporation	July 2025		1.99	%		25,000		697		25,000		(767	)
Truist Financial Corporation	December 2025		2.30	%		25,000		517		25,000		(1,125	)
Bank of Montreal	January 2026		1.92	%		25,000		833		25,000		(760	)
Bank of Montreal	January 2026		2.05	%		40,000		1,162		40,000		(1,415	)
Capital One, National Association	January 2026		2.08	%		35,000		980		35,000		(1,274	)
Truist Financial Corporation	January 2026		1.93	%		25,000		826		25,000		(768	)
Capital One, National Association	April 2026		2.68	%		15,000		121		15,000		(941	)
Capital One, National Association	July 2026		1.32	%		35,000		2,076		35,000		(205	)
Bank of Montreal	December 2026		2.33	%		10,000		233		10,000		(538	)
Bank of Montreal	December 2026		1.99	%		25,000		941		25,000		(936	)
Toronto-Dominion Bank	March 2027		2.46	%		15,531		660		—		—
Wells Fargo Bank, N.A.	April 2027		2.72	%		25,000		170		25,000		(1,887	)
Bank of Montreal	December 2027		2.37	%		25,000		637		25,000		(1,570	)
Capital One, National Association	December 2027		2.37	%		25,000		616		25,000		(1,575	)
Wells Fargo Bank, N.A.	January 2028		2.37	%		75,000		1,864		75,000		(4,741	)
Bank of Montreal	May 2029		2.09	%		25,000		1,195		25,000		(1,316	)
Regions Bank	May 2029		2.11	%		25,000		1,143		25,000		(1,356	)
Regions Bank	June 2029		2.03	%		25,000		1,265		25,000		(1,222	)
U.S. Bank National Association	June 2029		2.03	%		25,000		1,284		25,000		(1,220	)
U.S. Bank National Association	August 2029		1.35	%		25,000		2,407		25,000		(9	)
Regions Bank	March 2032		2.69	%		15,531		1,103		—		—
U.S. Bank National Association	March 2032		2.70	%		15,531		1,126		—		—
Bank of Montreal	March 2034		2.81	%		31,064		2,435		—		—
					$	717,657	$	26,562	$	640,000	$	(27,171	)

At June 30, 2022, the weighted average fixed rate on all outstanding interest rate swaps was 2.11%.

The total amounts recognized, and the location in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income, from converting from variable rates to fixed rates under these agreements were as follows:

	Amount of Gain (Loss)			Reclassification from			Total Interest Expense
	Recognized in			Accumulated Other			Presented in the Condensed
(in thousands)	Accumulated Other			Comprehensive Income (Loss)			Consolidated Statements of
	Comprehensive				Amount of		Income and Comprehensive
For the Three Months Ended June 30,	Income (Loss)			Location	Loss		Income
2022	$	18,772		Interest expense	$	3,122	$	17,888
2021		(2,911	)	Interest expense		4,039		15,430

	Amount of Gain		Reclassification from			Total Interest Expense
	Recognized in		Accumulated Other			Presented in the Condensed
	Accumulated Other		Comprehensive Income (Loss)			Consolidated Statements of
(in thousands)	Comprehensive			Amount of		Income and Comprehensive
For the Six Months Ended June 30,	Income (Loss)		Location	Loss		Income
2022	$	53,733	Interest expense	$	6,987	$	34,784
2021		25,769	Interest expense		8,055		31,538

Amounts related to the interest rate swaps expected to be reclassified out of Accumulated other comprehensive income (loss) to Interest expense during the next twelve months are estimated to be a gain of $4.8 million. The Company is exposed to credit risk in the event of non-performance by the counterparties of the swaps. The Company minimizes the risk exposure by limiting counterparties to only major banks who meet established credit and capital guidelines

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Non-Controlling Interests

6 Months Ended

Jun. 30, 2022

Noncontrolling Interest [Abstract]

Non-Controlling Interests

12. Non-Controlling Interests

The following table summarizes OP Units exchanged for shares of common stock:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
OP Units exchanged for shares of common stock		—		1,127		—		1,165
Value of units exchanged	$	—	$	17,859	$	—	$	18,465

On June 16, 2021, the Company achieved the VWAP milestone applicable to tranche 1 of the earnout (see Note 4). As a result, the OP issued 247,899 non-controlling OP Units on June 22, 2021. There were no OP Units issued during the three and six months ended June 30, 2022.

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Credit Risk Concentrations

6 Months Ended

Jun. 30, 2022

Risks and Uncertainties [Abstract]

Credit Risk Concentrations

13. Credit Risk Concentrations

The Company maintained bank balances that, at times, exceeded the federally insured limit during the six months ended June 30, 2022. The Company has not experienced losses relating to these deposits and management does not believe that the Company is exposed to any significant credit risk with respect to these amounts.

For the three and six months ended June 30, 2022 and 2021, the Company had no individual tenants or common franchises that accounted for more than 10% of Lease revenues, net.

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Equity

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Equity

14. Equity

The Company established an at-the-market common equity offering program ("ATM Program"), through which it may, from time to time, publicly offer and sell shares of common stock having an aggregate gross sales price of up to $400.0 million. The ATM Program provides for forward sale agreements, enabling the Company to set the price of shares upon pricing the offering, while delaying the issuance of shares and the receipt of the net proceeds. As of June 30, 2022, the Company has issued common stock with an aggregate gross sales price of $234.0 million under the ATM Program and could issue additional common stock with an aggregate sales price of up to $166.0 million under the ATM Program.

The following table presents information about the Company's ATM Program activity:

	For the Three Months Ended		For the Six Months Ended
(in thousands, except per share amounts)	June 30, 2022		June 30, 2022
Number of common shares issued		3,236		9,509
Weighted average sale price per share	$	21.42	$	21.69
Net proceeds	$	68,321	$	202,647
Gross proceeds		69,313		205,857

There was no ATM Program activity during the three and six months ended June 30, 2021.

On June 28, 2021, the Corporation completed its first public follow-on equity offering and issued 11,500,000 shares of Common Stock, including shares issued pursuant to the underwriters' full exercise of their over-allotment option, at $23.00 per share. The net proceeds, after deducting underwriting discounts and commissions of $10.6 million and $0.4 million of other expenses, were $253.5 million. The Company used the net proceeds to repay the remaining $160.6 million principal due under the Company's revolving credit facility. The remaining net proceeds will be used for general business purposes, including acquisitions.

On June 16, 2021, the Company achieved the VWAP milestone applicable to tranche 1 of the earnout (see Note 4). As a result, the Company issued 145,195 shares of common stock on June 22, 2021. There was no such activity during the three and six months ended June 30, 2022.

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

15. Stock-Based Compensation

Restricted Stock Awards

During the three and six months ended June 30, 2022, the Company awarded 32,868 and 174,913 shares of RSAs, respectively, to officers, employees and non-employee directors, under the Equity Incentive Plan. During the three and six months ended June 30, 2021, the Company issued 1,665 and 201,095 shares of RSAs, respectively. The holder of RSAs is generally entitled at all times on and after the date of issuance of the restricted common shares to exercise the rights of a stockholder of the Company, including the right to vote the shares and the right to receive dividends on the shares. The RSAs vest over a one, three, or four year period from the date of the grant and are subject to the holder's continued service through the applicable vesting dates and in accordance with the terms of the individual award agreements. The weighted average value of awards granted during the three and six months ended June 30, 2022, were $20.23 and $21.39, respectively, which were based on the market price per share of the Company's common stock on the grant date. The weighted average value of awards granted during the three and six months ended June 30, 2021, were $19.76 and $18.66, respectively.

The following table presents information about the Company's RSAs:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Compensation cost (a)	$	877	$	728	$	1,487	$	2,423
Dividends declared on unvested RSAs		106		97		203	201
Fair value of shares vested during the period		—		774		3,209		3,296

(a)Includes $0.1 million compensation cost recognized from RSAs granted to non-employee directors for the three and six months ended June 30, 2022.

(in thousands, except recognition period)	June 30, 2022		December 31, 2021
Unamortized value of RSAs	$	6,794	$	4,715
Weighted average amortization period (in years)		2.5		2.4

The following table presents information about the Company's RSA activity:

	For the Three Months Ended June 30,
	2022					2021
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share		Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested at beginning of period		367		$	20.33		416		$	19.62
Granted		33			20.23		2			19.76
Vested		—			—		(40	)		19.81
Forfeited		(8	)		19.95		—			—
Unvested at end of period		392			20.33		378			19.60

	For the Six Months Ended June 30,
	2022					2021
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share		Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested at beginning of period		372		$	19.62		341		$	20.50
Granted		175			21.39		201			18.67
Vested		(146	)		19.80		(164	)		20.15
Forfeited		(9	)		20.06		—			—
Unvested at end of period		392			20.33		378			19.60

Performance-based Restricted Stock Units

The Company issued target grants of 121,883 and 132,189 PRSUs, during the six months ended June 30, 2022 and 2021, respectively, under the Equity Incentive Plan to the officers of the Company. There were no PRSUs granted during the three months ended June 30, 2022 and 2021, respectively. The awards are non-vested restricted stock units where the vesting percentages and the ultimate number of units vesting will be measured 50% based on the relative total shareholder return ("rTSR") of the Company's common stock as compared to the rTSR of peer companies, as identified in the grant agreements, over a three-year period, and 50% based on the rTSR of the Company's common stock as compared to the rTSR of the MSCI US REIT Index over a three year measurement period. Vesting percentages range from 0% to 200% with a target of 100%. rTSR means the percentage appreciation in the fair market value of one share over the three year measurement period beginning on the date of grant, assuming the reinvestment of dividends on the ex-dividend date. The target number of units is based on achieving a rTSR equal to the 55th percentile of the peer companies and MSCI US REIT Index. Dividends accrue during the measurement period and will be paid on the PRSUs ultimately earned at the end of the measurement period in either cash or common stock, at the direction of the Board's Compensation Committee. The grant date fair value of the PRSUs was measured using a Monte Carlo simulation model based on assumptions including share price volatility.

The following tables present information about the Company's PRSUs:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands, except recognition period)	2022		2021		2022		2021
Compensation cost	$	504	$	223	$	823	$	297

	June 30, 2022		December 31, 2021
Unamortized value of PRSUs	$	4,490	$	1,931
Weighted average amortization period (in years)		2.3		2.2

The following table presents information about the Company's PRSU activity:

	For the Three Months Ended June 30,
	2022					2021
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share		Number of Shares		Weighted Average Grant Date Fair Value per Share
Unvested at beginning of period		232		$	26.25		110	$	24.40
Granted		—			—		—		—
Vested		—			—		—		—
Forfeited		(1	)		27.93		—		—
Unvested at end of period		231			26.25		110		24.40

	For the Six Months Ended June 30,
	2022					2021
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share		Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested at beginning of period		110		$	24.40		—		$	—
Granted		122			27.93		132			24.40
Vested		—			—		—			—
Forfeited		(1	)		27.93		(22	)		24.40
Unvested at end of period		231			26.25		110			24.40

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Earnings per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

16. Earnings per Share

The following table summarizes the components used in the calculation of basic and diluted earnings per share ("EPS"):

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(in thousands, except per share amounts)	2022			2021			2022			2021
Basic earnings:
Net earnings attributable to Broadstone Net Lease, Inc. common    shareholders	$	33,516		$	21,214		$	60,274		$	43,437
Less: earnings allocated to unvested restricted shares		(105	)		(97	)		(202	)		(201	)
Net earnings used to compute basic earnings per common share	$	33,411		$	21,117		$	60,072		$	43,236
Diluted earnings:
Net earnings used to compute basic earnings per share	$	33,411		$	21,117		$	60,072		$	43,236
Net earnings attributable to non-controlling interests		2,036			1,606			3,719			3,343
Net earnings used to compute diluted earnings per common share	$	35,447		$	22,723		$	63,791		$	46,579
Weighted average number of common shares outstanding		169,933			146,506			167,072			146,089
Less: weighted average unvested restricted shares (a)		(378	)		(387	)		(374	)		(361	)
Weighted average number of common shares outstanding used in    basic earnings per common share		169,555			146,119			166,698			145,728
Effects of restricted stock units (b)		378			219			325			147
Effects of convertible membership units (c)		10,323			11,092			10,323			11,240
Weighted average number of common shares outstanding used in    diluted earnings per common share		180,256			157,430			177,346			157,115
Basic earnings per share	$	0.20		$	0.14		$	0.36		$	0.30
Diluted earnings per share	$	0.20		$	0.14		$	0.36		$	0.30

(a)Represents the weighted average effects of 391,187 and 378,516 unvested restricted shares of common stock as of June 30, 2022 and 2021, respectively, which will be excluded from the computation of earnings per share until they vest. The shares of restricted common stock were not included in the calculation of diluted earnings per share, as the effect of doing so would have been anti-dilutive.

(b)Represents the weighted average effects of shares of common stock to be issued as though the end of the period were the end of the performance period (see Note 15).

Represents the weighted average effects of 10,323,206 and 10,481,872 OP Units outstanding at June 30, 2022 and 2021, respectively. OP Units are included in the diluted earnings per share calculation. However, because such OP Units would also require that the share of the net income attributable to such OP units also be added back to net income, there is no effect to EPS.

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Supplemental Cash Flow Disclosures

6 Months Ended

Jun. 30, 2022

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Disclosures

17. Supplemental Cash Flow Disclosures

Cash paid for interest was $32.1 million and $30.0 million for the six months ended June 30, 2022 and 2021, respectively. Cash paid for income taxes was $1.0 million and $0.7 million for the six months ended June 30, 2022 and 2021, respectively.

The following are non-cash transactions and have been excluded from the accompanying Condensed Consolidated Statements of Cash Flows:

•During the six months ended June 30, 2021, the Company converted 1,164,461 OP Units valued at $18.5 million to 1,164,461 shares of common stock. There were no OP Units converted to common stock during the six months ended June 30, 2022.

•At June 30, 2022 and 2021, dividend amounts declared and accrued but not yet paid amounted to $49.5 million and $43.2 million, respectively.

•At June 30, 2022 and 2021, the Company adjusted the carrying value of Non-controlling interests to reflect their share of the book value of the OP by $2.9 million and $7.9 million, respectively, with the reallocation recorded as an offset to Additional paid-in capital and Accumulated other comprehensive income (loss).

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

18. Commitments and Contingencies

Litigation

From time to time, the Company is a party to various litigation matters incidental to the conduct of the Company's business. While the resolution of such matters cannot be predicted with certainty, based on currently available information, the Company does not believe that the final outcome of any of these matters will have a material effect on its consolidated financial position, results of operations, or liquidity.

Property and Acquisition Related

In connection with ownership and operation of real estate, the Company may potentially be liable for cost and damages related to environmental matters. The Company is not aware of any non-compliance, liability, claim, or other environmental condition that would have a material effect on its consolidated financial position, results of operations, or liquidity.

The Company had a commitment to fund a building expansion project related to a previous acquisition for a total of $17.4 million, in exchange for an increase in base rent. In June 2022, the Company fulfilled this commitment and the base rent increased accordingly.

The Company is a party to three separate tax protection agreements with the contributing members of three distinct UPREIT transactions and to the Founding Owners' Tax Protection Agreement in connection with the internalization. The tax protection agreements require the Company to indemnify the beneficiaries in the event of a sale, exchange, transfer, or other disposal of the contributed property, and in the case of the Founding Owners' Tax Protection Agreement, the entire Company, in a taxable transaction that would cause such beneficiaries to recognize a gain that is protected under the agreements, subject to certain exceptions. The Company is required to allocate an amount of nonrecourse liabilities to each beneficiary that is at least equal to the minimum liability amount, as contained in the agreements. The minimum liability amount and the associated allocation of nonrecourse liabilities are calculated in accordance with applicable tax regulations, are completed at the OP level, and do not represent GAAP accounting. Therefore, there is no impact to the Condensed Consolidated Financial Statements. Based on values as of June 30, 2022, taxable sales of the applicable properties would trigger liability under the agreements of approximately $22.3 million. Based on information available, the Company does not believe that the events resulting in damages as detailed above have occurred or are likely to occur in the foreseeable future.

In the normal course of business, the Company enters into various types of commitments to purchase real estate properties. These commitments are generally subject to the Company's customary due diligence process and, accordingly, a number of specific conditions must be met before the Company is obligated to purchase the properties.

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Subsequent Events

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

19. Subsequent Events

On July 15, 2022, the Company paid distributions totaling $49.2 million.

On July 28, 2022, the Board of Directors declared a quarterly distribution of $0.270 per share on the Company's common stock and OP Units for the third quarter of 2022, which will be payable on or before October 14, 2022 to stockholders and OP unitholders of record as of September 30, 2022.

Subsequent to June 30, 2022, the Company continued to expand its operations through the acquisition of additional rental property and associated intangible assets and liabilities. The Company acquired approximately $80.2 million of rental property and associated intangible assets and liabilities (see Note 5).

On August 1, 2022, the Company entered into two new unsecured bank term loans, including a $200.0 million, five year term loan that matures in 2027 (the "2027 Unsecured Term Loan"), and a $300.0 million, seven year term loan that matures in 2029 (the "2029 Unsecured Term Loan"). Borrowings on the new term loans bear interest at variable rates based on the Secured Overnight Financing Rate plus a margin based on the Company's credit rating, ranging between 0.80% and 1.60% per annum for the 2027 Unsecured Term Loan, and 1.15% and 2.20% per annum for the 2029 Unsecured Term Loan. The applicable margin is 0.95% and 1.25% for the 2027 Unsecured Term Loan and 2029 Unsecured Term Loan, respectively. Proceeds from the loans were used to repay in full the $190.0 million unsecured term loan set to mature in 2024, including accrued interest, and a portion of the outstanding balance on the unsecured revolving credit facility.

Subsequent to June 30, 2022, the Company paid down $318.0 million, and borrowed $94.0 million on the unsecured revolving credit facility, the proceeds of which were used to fund acquisitions and for other general corporate purposes.

Through August 3, 2022, the Company issued 962,200 shares of common stock at a weighted average sale price of $21.44 per share under the ATM Program. The net proceeds, after deducting $0.3 million of commissions and other offering costs, were $20.3 million.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Interim Information

Interim Information

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information (Accounting Standards Codification ("ASC") 270, Interim Reporting) and Article 10 of the Securities and Exchange Commission's ("SEC") Regulation S-X. Accordingly, the Corporation has omitted certain footnote disclosures which would substantially duplicate those contained within the audited consolidated financial statements for the year ended December 31, 2021, included in the Company's 2021 Annual Report on Form 10-K, filed with the SEC on February 23, 2022. Therefore, the readers of this quarterly report should refer to those audited consolidated financial statements, specifically Note 2, Summary of Significant Accounting Policies, for further discussion of significant accounting policies and estimates. The Corporation believes all adjustments necessary for a fair presentation have been included in these interim Condensed Consolidated Financial Statements (which include only normal recurring adjustments).

Principles of Consolidation

Principles of Consolidation

The Condensed Consolidated Financial Statements include the accounts and operations of the Company. All intercompany balances and transactions have been eliminated in consolidation.

To the extent the Corporation has a variable interest in entities that are not evaluated under the variable interest entity ("VIE") model, the Corporation evaluates its interests using the voting interest entity model. The Corporation has complete responsibility for the day-to-day management of, authority to make decisions for, and control of the OP. Based on consolidation guidance, the Corporation has concluded that the OP is a VIE as the members in the OP do not possess kick-out rights or substantive participating rights. Accordingly, the Corporation consolidates its interest in the OP. However, because the Corporation holds the majority voting interest in the OP and certain other conditions are met, it qualifies for the exemption from providing certain disclosure requirements associated with investments in VIEs.

The portion of the OP not owned by the Corporation is presented as non-controlling interests as of and during the periods presented.

Basis of Accounting

Basis of Accounting

The Condensed Consolidated Financial Statements have been prepared in accordance with GAAP.

Use of Estimates

Use of Estimates

The preparation of Condensed Consolidated Financial Statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include, but are not limited to, the allocation of purchase price between tangible and intangible assets acquired and liabilities assumed, the value of long-lived assets and goodwill, the provision for impairment, the depreciable lives of rental property, the amortizable lives of intangible assets and liabilities, the probability of collecting outstanding and future lease payments, the fair value of the earnout liability, the fair value of assumed debt, the fair value of the Company's interest rate swap agreements, and the determination of any uncertain tax positions. Accordingly, actual results may differ from those estimates.

Long-lived Asset Impairment

Long-lived Asset Impairment

The Company reviews long-lived assets to be held and used for possible impairment when events or changes in circumstances indicate that their carrying amounts may not be recoverable. If, and when, such events or changes in circumstances are present, an impairment exists to the extent the carrying value of the long-lived asset or asset group exceeds the sum of the undiscounted cash flows expected to result from the use of the long-lived asset or asset group and its eventual disposition. Such cash flows include expected future operating income, as adjusted for trends and prospects, as well as the effects of demand, competition, and other factors. An impairment loss is measured as the amount by which the carrying amount of the long-lived asset or asset group exceeds its fair value. Significant judgment is made to determine if and when impairment should be taken. The Company's assessment of impairment as of June 30, 2022 and 2021 was based on the most current information available to the Company. Certain of the Company's properties may have fair values less than their carrying amounts. However, based on the Company's plans with respect to each of those properties, the Company believes that their carrying amounts are recoverable and therefore, no impairment charges were recognized other than those described below. If the operating conditions mentioned above deteriorate or if the Company's expected holding period for assets changes, subsequent tests for impairments could result in additional impairment charges in the future.

Inputs used in establishing fair value for real estate assets generally fall within Level 3 of the fair value hierarchy, which are characterized as requiring significant judgment as little or no current market activity may be available for validation. The main indicator used to establish the classification of the inputs is current market conditions, as derived through the use of published commercial real estate market information. The Company determines the valuation of impaired assets using generally accepted valuation techniques including discounted cash flow analysis, income capitalization, analysis of recent comparable sales transactions, actual sales negotiations, and bona fide purchase offers received from third parties. Management may consider a single valuation technique or multiple valuation techniques, as appropriate, when estimating the fair value of its real estate.

The following table summarizes the Company's impairment charges, resulting primarily from changes in the Company's long-term hold strategy, with respect to the individual properties:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands, except number of properties)	2022		2021		2022		2021
Number of properties		1		—		1		1
Impairment charge	$	1,380	$	—	$	1,380	$	2,012

Restricted Cash

Restricted Cash

Restricted cash includes escrow funds the Company maintains pursuant to the terms of certain mortgages, lease agreements, and undistributed proceeds from the sale of properties under Section 1031 of the Internal Revenue Code of 1986, as amended (the "Code"), and is reported within Prepaid expenses and other assets on the Condensed Consolidated Balance Sheets. Restricted cash consisted of the following:

	June 30,		December 31,
(in thousands)	2022		2021
Escrow funds and other	$	6,634	$	6,100
Undistributed 1031 proceeds		5,529		—
	$	12,163	$	6,100

Rent Received in Advance

Rent Received in Advance

Rent received in advance represents tenant payments received prior to the contractual due date, and is included in Accounts payable and other liabilities on the Condensed Consolidated Balance Sheets. Rent received in advance consisted of the following:

(in thousands)	June 30, 2022		December 31, 2021
Rent received in advance	$	13,533	$	15,162

Fair Value Measurements

Fair Value Measurements

Recurring Fair Value Measurements

The balances of financial instruments measured at fair value on a recurring basis are as follows (see Note 11):

	June 30, 2022
(in thousands)	Total		Level 1		Level 2		Level 3
Interest rate swap, assets	$	26,562	$	—	$	26,562	$	—

	December 31, 2021
(in thousands)	Total			Level 1		Level 2			Level 3
Interest rate swap, liabilities	$	(27,171	)	$	—	$	(27,171	)	$	—

Long-term Debt – The fair value of the Company's debt was estimated using Level 1, Level 2, and Level 3 inputs based on recent secondary market trades of the Company's 2031 Senior Unsecured Public Notes (see Note 9), recent financing transactions, estimates of the fair value of the property that serves as collateral for such debt, historical risk premiums for loans of comparable quality, current London Interbank Offered Rate ("LIBOR"), U.S. Treasury obligation interest rates, and discounted estimated future cash payments to be made on such debt. The discount rates estimated reflect the Company's judgment as to the approximate current lending rates for loans or groups of loans with similar maturities and assumes that the debt is outstanding through maturity. Market information, as available, or present value techniques were utilized to estimate the amounts required to be disclosed. Since such amounts are estimates that are based on limited available market information for similar transactions and do not acknowledge transfer or other repayment restrictions that may exist on specific loans, it is unlikely that the estimated fair value of any such debt could be realized by immediate settlement of the obligation.

The following table summarizes the carrying amount reported on the Condensed Consolidated Balance Sheets and the Company's estimate of the fair value of the unsecured revolving credit facility, mortgages, unsecured term loans, and senior unsecured notes which reflects the fair value of interest rate swaps:

(in thousands)	June 30, 2022		December 31, 2021
Carrying amount	$	1,856,377	$	1,699,160
Fair value		1,758,160		1,785,701

Non-recurring Fair Value Measurements

The Company's non-recurring fair value measurements at June 30, 2022 and December 31, 2021 consisted of the fair value of impaired real estate assets that were determined using Level 3 inputs.

Stock-Based Compensation

Stock-Based Compensation

The Company has issued restricted stock awards ("RSAs") and performance-based restricted stock units ("PRSUs") under its 2020 Omnibus Equity and Incentive Plan (the "Equity Incentive Plan"). Subject to any adjustment as provided in the Equity Incentive Plan, up to 9,000,000 shares may be issued to awards granted under the Equity Incentive Plan. The Company accounts for stock-based incentives in accordance with ASC 718, Compensation – Stock Compensation, which requires that such compensation be recognized in the financial statements based on the award's estimated grant date fair value. The value of such awards is recognized as compensation expense in General and administrative expenses in the Condensed Consolidated Statements of Income and Comprehensive Income over the appropriate vesting period on a straight-line basis or at the cumulative amount vested at each balance sheet date, if greater. The Company records forfeitures during the period in which they occur by reversing all previously recorded stock compensation expense associated with the forfeited shares. Dividends declared on RSAs issued under the Equity Incentive Plan are recorded as Cumulative distributions in excess of retained earnings on the Condensed Consolidated Balance Sheets. Accumulated dividends related to forfeited RSAs are reversed through compensation expense in the period the forfeiture occurs. Dividends accrued on the PRSUs are recorded as Cumulative distributions in excess of retained earnings on the Condensed Consolidated Balance Sheets. Accumulated dividends accrued related to forfeited PRSUs are reversed in the period the forfeiture occurs.

Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. The guidance in ASU 2020-06 simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separately present certain conversion features in equity. In addition, the amendments in ASU 2020-06 also simplify the guidance in ASC Subtopic 815-40, Derivatives and Hedging: Contracts in Entity's Own Equity, by removing certain criteria that must be satisfied in order to classify a contract as equity, which is expected to decrease the number of freestanding instruments and embedded derivatives accounted for as assets or liabilities. Finally, the amendments revise the guidance on calculating earnings per share, requiring use of the if-converted method for all convertible instruments. The amendments in ASU 2020-06 were effective for the Company beginning January 1, 2022. The Company uses the two-class method of computing basic and diluted earnings per share. Based on the nature of the Company's potentially dilutive instruments, the treasury stock method is not used in computing dilutive earnings per share. Accordingly, the adoption of ASU 2020-06 did not have a material impact on the Company.

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Business Description (Tables)

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Outstanding Equity and Economic Ownership Interest

The following table summarizes the outstanding equity and economic ownership interest of the Corporation and the OP:

	June 30, 2022									December 31, 2021
(in thousands)	Shares of Common Stock			OP Units			Total Diluted Shares			Shares of Common Stock			OP Units			Total Diluted Shares
Ownership interest		172,023			10,323			182,346			162,383			10,323			172,706
Percent ownership of OP		94.3	%		5.7	%		100.0	%		94.0	%		6.0	%		100.0	%

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Summary of Impairment Charge

The following table summarizes the Company's impairment charges, resulting primarily from changes in the Company's long-term hold strategy, with respect to the individual properties:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands, except number of properties)	2022		2021		2022		2021
Number of properties		1		—		1		1
Impairment charge	$	1,380	$	—	$	1,380	$	2,012

Summary of Restricted Cash

Restricted cash consisted of the following:

	June 30,		December 31,
(in thousands)	2022		2021
Escrow funds and other	$	6,634	$	6,100
Undistributed 1031 proceeds		5,529		—
	$	12,163	$	6,100

Summary of Rents Received in Advance

Rent received in advance consisted of the following:

(in thousands)	June 30, 2022		December 31, 2021
Rent received in advance	$	13,533	$	15,162

Balances of Financial Instruments Measured at Fair Value on Recurring Basis

The balances of financial instruments measured at fair value on a recurring basis are as follows (see Note 11):

	June 30, 2022
(in thousands)	Total		Level 1		Level 2		Level 3
Interest rate swap, assets	$	26,562	$	—	$	26,562	$	—

	December 31, 2021
(in thousands)	Total			Level 1		Level 2			Level 3
Interest rate swap, liabilities	$	(27,171	)	$	—	$	(27,171	)	$	—

Summary of Carrying Amount Reported on Condensed Consolidated Balance Sheets

The following table summarizes the carrying amount reported on the Condensed Consolidated Balance Sheets and the Company's estimate of the fair value of the unsecured revolving credit facility, mortgages, unsecured term loans, and senior unsecured notes which reflects the fair value of interest rate swaps:

(in thousands)	June 30, 2022		December 31, 2021
Carrying amount	$	1,856,377	$	1,699,160
Fair value		1,758,160		1,785,701

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Internalization (Tables)

6 Months Ended

Jun. 30, 2022

Internalization [Abstract]

Summary of Earnout Tranches, Applicable VWAP of REIT Share and Applicable Earnout Periods

As of December 31, 2021, the Company achieved all four VWAP milestones, thereby triggering the payout of all earnout tranches. Below is a summary of the shares of common stock and OP Units issued, and cash paid for each earnout tranche:

(in thousands, except per share amounts)
	Shares of							40-Day
	Common Stock		OP Units					VWAP of a
Tranche	Issued		Issued		Cash Paid			REIT Share		Achievement Date
1		145		248	$	1,926	(a)	$	22.50	June 16, 2021
2		218		371		2,888	(a)		23.75	July 14, 2021
3		363		620		4,117			24.375	September 21, 2021
4		363		620		4,117			25.00	September 21, 2021

(a)Cash payments include amounts earned for dividends.

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Acquisitions of Rental Property (Tables)

6 Months Ended

Jun. 30, 2022

Business Combinations [Abstract]

Acquisitions of Rental Property Closed

The Company closed on the following acquisitions during the six months ended June 30, 2022:

(in thousands, except number of properties)		Number of		Real Estate
Date	Property Type	Properties		Acquisition Price
January 7, 2022	Retail		2	$	2,573
February 10, 2022	Industrial		1		21,733
February 15, 2022	Retail		1		1,341
February 28, 2022	Industrial		1		5,678
March 4, 2022	Retail		6		79,061
March 31, 2022	Restaurant		16		99,587
April 12, 2022	Retail		1		1,680
April 12, 2022	Industrial		1		7,522
April 13, 2022	Industrial		1		16,250
April 19, 2022	Retail		1		1,780
May 16, 2022	Retail		1		2,264
June 7, 2022	Retail		1		11,510
June 13, 2022	Retail		1		1,638
June 15, 2022	Retail		1		1,884
June 21, 2022	Industrial		5		78,500
June 29, 2022	Healthcare		1		12,467
June 30, 2022	Industrial		1		29,500
			42	$	374,968	(a)

(a)Acquisition price excludes capitalized acquisition costs of $3.1 million and a $17.4 million building expansion agreed to as a forward commitment in connection with a prior acquisition (see Note 18).

The Company closed on the following acquisitions during the six months ended June 30, 2021:

(in thousands, except number of properties)		Number of		Real Estate
Date	Property Type	Properties		Acquisition Price
February 5, 2021	Healthcare		1	$	4,843
February 26, 2021	Restaurant	(b)			181
March 11, 2021	Retail		13		26,834
March 30, 2021	Retail		11		41,324
March 31, 2021	Healthcare		3		14,140
June 4, 2021	Retail		2		19,420
June 9, 2021	Industrial		1		8,500
June 9, 2021	Industrial		11		106,578
June 25, 2021	Retail		8		12,131
June 28, 2021	Healthcare		4		15,300
June 30, 2021	Retail		1		1,279
June 30, 2021	Healthcare		7		30,750
			62	$	281,280	(c)

(b)Acquisition of additional land adjacent to an existing property.

(c)Acquisition price excludes capitalized acquisition costs of $3.0 million.

Subsequent to June 30, 2022, the Company closed on the following acquisitions (see Note 19):

(in thousands, except number of properties)		Number of		Real Estate
Date	Property Type	Properties		Acquisition Price
July 1, 2022	Retail		2	$	3,052
July 7, 2022	Retail		1		2,171
July 8, 2022	Industrial		11		75,000
			14	$	80,223

Summary of Allocation of Purchase Price

The following table summarizes the purchase price allocation for completed real estate acquisitions:

	For the Six Months Ended June 30,
(in thousands)	2022				2021
Land	$	77,088			$	48,477
Land improvements		26,002				15,844
Buildings and improvements		253,500				197,064
Acquired in-place leases(d)		29,585				22,729
Acquired above-market lease (e)		—				211
Acquired below-market lease (f)		(76	)			—
Non-real estate liabilities assumed		(8,051	)			—
	$	378,048		(g)	$	284,325

(d)The weighted average amortization period for acquired in-place leases is 20 years and 14 years for acquisitions completed during the six months ended June 30, 2022 and 2021, respectively.

(e)The weighted average amortization period for the acquired above-market leases is 10 years for acquisitions completed during the six months ended June 30, 2021. There were no above-market leases acquired during the six months ended June 30, 2022.

(f)The weighted average amortization period for acquired below-market leases is nine years for acquisitions completed during the six months ended June 30, 2022. There were no below-market leases acquired during the six months ended June 30, 2021.

(g)Excludes $17.4 million building expansion agreed to as a forward commitment in connection with a prior acquisition (see Note 18).

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Sale of Real Estate (Tables)

6 Months Ended

Jun. 30, 2022

Real Estate [Abstract]

Schedule of Sale of Real Estate

The Company closed on the following sales of real estate, none of which qualified as discontinued operations:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(in thousands, except number of properties)	2022			2021			2022			2021
Number of properties disposed		3			11			4			19
Aggregate sale price	$	11,889		$	22,276		$	17,101		$	45,338
Aggregate carrying value		(7,311	)		(17,201	)		(11,135	)		(34,573	)
Additional sales expenses		(507	)		(1,237	)		(699	)		(2,194	)
Gain on sale of real estate	$	4,071		$	3,838		$	5,267		$	8,571

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Investment in Rental Property and Lease Arrangements (Tables)

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Rental Property Subject to Non-cancelable Operating Leases

Depreciation expense on investment in rental property was as follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Depreciation	$	27,730	$	24,144	$	54,388	$	47,887

Estimated Lease Payments to be Received under Non-cancelable Operating Leases

Estimated lease payments to be received under non-cancelable operating leases with tenants at June 30, 2022 are as follows:

(in thousands)
Remainder of 2022	$	178,218
2023		359,960
2024		357,102
2025		350,807
2026		341,436
Thereafter		2,695,940
	$	4,283,463

Net Investment in Direct Financing Leases

The Company's net investment in direct financing leases was comprised of the following:

(in thousands)	June 30, 2022			December 31, 2021
Undiscounted estimated lease payments to be received	$	40,983		$	42,602
Estimated unguaranteed residual values		15,203			15,203
Unearned revenue		(27,473	)		(28,893	)
Reserve for credit losses		(129	)		(130	)
Net investment in direct financing leases	$	28,584		$	28,782

Direct Financing Leases, Lease Receivable Maturity

Undiscounted estimated lease payments to be received under non-cancelable direct financing leases with tenants at June 30, 2022 are as follows:

(in thousands)
Remainder of 2022	$	1,622
2023		3,304
2024		3,361
2025		3,475
2026		3,547
Thereafter		25,674
	$	40,983

Summary of Amounts Reported as Lease Revenues, Net on the Consolidated Statements of Income and Comprehensive Income

The following table summarizes amounts reported as Lease revenues, net on the Condensed Consolidated Statements of Income and Comprehensive Income:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(in thousands)	2022			2021			2022			2021
Contractual rental amounts billed for operating leases	$	87,505		$	75,011		$	171,901		$	148,256
Adjustment to recognize contractual operating lease billings on a    straight-line basis		5,090			4,724			10,111			9,533
Net write-offs of accrued rental income		—			—			(1,326	)		(442	)
Variable rental amounts earned		291			114			477			205
Earned income from direct financing leases		721			728			1,444			1,458
Interest income from sales-type leases		15			15			29			29
Operating expenses billed to tenants		4,263			4,196			8,998			8,584
Other income from real estate transactions		134			28			176			33
Adjustment to revenue recognized for uncollectible rental    amounts billed, net		(6	)		(57	)		44			(199	)
Total lease revenues, net	$	98,013		$	84,759		$	191,854		$	167,457

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Intangible Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Liabilities Relating to Amortization

The following is a summary of intangible assets and liabilities and related accumulated amortization:

(in thousands)	June 30, 2022			December 31, 2021
Lease intangibles:
Acquired above-market leases	$	46,772		$	47,147
Less accumulated amortization		(18,052	)		(16,807	)
Acquired above-market leases, net		28,720			30,340
Acquired in-place leases		407,993			380,766
Less accumulated amortization		(120,594	)		(107,464	)
Acquired in-place leases, net		287,399			273,302
Total intangible lease assets, net	$	316,119		$	303,642
Acquired below-market leases	$	105,293		$	105,310
Less accumulated amortization		(38,429	)		(34,714	)
Intangible lease liabilities, net	$	66,864		$	70,596
Leasing fees	$	14,650		$	14,786
Less accumulated amortization		(5,533	)		(5,145	)
Leasing fees, net	$	9,117		$	9,641

Schedule of Amortization of Intangible Lease Assets and Liabilities

Amortization of intangible lease assets and liabilities was as follows:

(in thousands)		For the Three Months Ended June 30,				For the Six Months Ended June 30,
Intangible	Financial Statement Presentation	2022		2021		2022		2021
Acquired in-place leases and leasing fees	Depreciation and amortization	$	7,749	$	7,058	$	15,350	$	14,005
Above-market and below-market leases	Lease revenues, net		1,170		665		2,331		1,418

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated future amortization of intangible assets and liabilities at June 30, 2022 is as follows:

(in thousands)
Remainder of 2022	$	13,338
2023		26,512
2024		25,752
2025		24,455
2026		23,105
Thereafter		145,210
	$	258,372

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Unsecured Credit Agreements (Tables)

6 Months Ended

Jun. 30, 2022

Debt Instrument [Line Items]

Summary of Debt Issuance Cost Amortization

The following table summarizes debt issuance cost and original issuance discount amortization:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Debt issuance costs and original issuance discount amortization	$	900	$	956	$	1,756	$	1,870

Unsecured Debt

Debt Instrument [Line Items]

Summary of Unsecured Credit Agreements

The following table summarizes the Company's unsecured credit agreements:

	Outstanding Balance
(in thousands, except interest rates)	June 30, 2022			December 31, 2021			Interest Rate	Maturity Date
Unsecured revolving    credit facility	$	320,657		$	102,000		Applicable reference rate + 0.85% (a) (b) (c)	Mar. 2026
Unsecured term loans:
2022 Unsecured Term Loan		—			60,000		one-month LIBOR + 1.00% (c)	Feb. 2022 (d)
2024 Unsecured Term Loan		190,000			190,000		one-month LIBOR + 1.00% (c)	Jun. 2024
2026 Unsecured Term Loan		400,000			400,000		one-month LIBOR + 1.00% (c)	Feb. 2026
Total unsecured term loans		590,000			650,000
Unamortized debt issuance costs, net		(2,902	)		(3,329	)
Total unsecured term loans, net		587,098			646,671
Senior unsecured notes:
2027 Senior Unsecured Notes -    Series A		150,000			150,000		4.84%	Apr. 2027
2028 Senior Unsecured Notes -    Series B		225,000			225,000		5.09%	Jul. 2028
2030 Senior Unsecured Notes -    Series C		100,000			100,000		5.19%	Jul. 2030
2031 Senior Unsecured Public Notes		375,000			375,000		2.60%	Sep. 2031
Total senior unsecured notes		850,000			850,000
Unamortized debt issuance costs and    original issuance discount, net		(5,822	)		(6,199	)
Total senior unsecured notes, net		844,178			843,801
Total unsecured debt, net	$	1,751,933		$	1,592,472

(a)At June 30, 2022, a balance of $243.0 million was subject to the one-month Secured Overnight Financing Rate of 1.69%. The remaining balance includes $100 million CAD borrowings remeasured to $77.7 million USD, which was subject to the one-month Canadian Dollar Offered Rate of 2.23%.

(b)At December 31, 2021, interest rate was one-month LIBOR plus 1.00%

(c)At June 30, 2022 and December 31, 2021, one-month LIBOR was 1.79% and 0.10%, respectively.

(d)The 2022 Unsecured Term Loan was paid in full in February 2022, with borrowings from the unsecured revolving credit facility.

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Mortgages (Tables)

6 Months Ended

Jun. 30, 2022

Debt Instrument [Line Items]

Schedule of Estimated Future Principal Payments

Estimated future principal payments to be made under the above mortgages and the Company's unsecured credit agreements (see Note 9) at June 30, 2022 are as follows:

(in thousands)
Remainder of 2022	$	1,466
2023		7,582
2024		199,760
2025		20,195
2026		737,500
Thereafter		889,874
	$	1,856,377

Secured Debt

Debt Instrument [Line Items]

Summary of Unsecured Credit Agreements

The Company's mortgages consist of the following:

	Origination	Maturity
(in thousands, except interest rates)	Date	Date	Interest	June 30,			December 31,
Lender	(Month/Year)	(Month/Year)	Rate	2022			2021
Wilmington Trust National Association	Apr-19	Feb-28	4.92%	$	46,142		$	46,760		(a) (b) (c) (d)
Wilmington Trust National Association	Jun-18	Aug-25	4.36%		19,355			19,557		(a) (b) (c) (e)
PNC Bank	Oct-16	Nov-26	3.62%		16,886			17,094		(b) (c)
T2 Durham I, LLC	Jul-21	Jul-24	Greater of Prime + 1.25% or 5.00%		7,500			7,500		(b) (f)
Aegon	Apr-12	Oct-23	6.38%		5,837			6,249		(b) (g)
Total mortgages					95,720			97,160
Debt issuance costs, net					(267	)		(314	)
Mortgages, net				$	95,453		$	96,846

(a)Non-recourse debt includes the indemnification/guaranty of the Corporation and/or OP pertaining to fraud, environmental claims, insolvency, and other matters.

(b)Debt secured by related rental property and lease rents.

(c)Debt secured by guaranty of the OP.

(d)Mortgage was assumed in April 2019 as part of the acquisition of the related property. The debt was recorded at fair value at the time of assumption.

(e)Mortgage was assumed in June 2018 as part of the acquisition of the related property. The debt was recorded at fair value at the time of assumption.

(f)Mortgage is subject to interest at a daily floating annual rate equal to the Prime Rate plus 1.25%, but no less than 5.00% per annum. At June 30, 2022 and December 31, 2021, the interest rate was 6.00% and 5.00%, respectively.

Mortgage was assumed in April 2012 as part of the acquisition of the related property. The debt was recorded at fair value at the time of the assumption.

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Interest Rate Swaps (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Company's Outstanding Interest-rate Swap Agreement

The following is a summary of the Company's outstanding interest rate swap agreements:

(in thousands, except interest rates)					June 30, 2022				December 31, 2021
Counterparty	Maturity Date	Fixed Rate			Notional Amount		Fair Value		Notional Amount		Fair Value
Wells Fargo Bank, N.A.	October 2024		2.72	%	$	15,000	$	110	$	15,000	$	(702	)
Capital One, National Association	December 2024		1.58	%		15,000		510		15,000		(241	)
Bank of Montreal	January 2025		1.91	%		25,000		672		25,000		(649	)
Truist Financial Corporation	April 2025		2.20	%		25,000		520		25,000		(905	)
Bank of Montreal	July 2025		2.32	%		25,000		459		25,000		(1,049	)
Truist Financial Corporation	July 2025		1.99	%		25,000		697		25,000		(767	)
Truist Financial Corporation	December 2025		2.30	%		25,000		517		25,000		(1,125	)
Bank of Montreal	January 2026		1.92	%		25,000		833		25,000		(760	)
Bank of Montreal	January 2026		2.05	%		40,000		1,162		40,000		(1,415	)
Capital One, National Association	January 2026		2.08	%		35,000		980		35,000		(1,274	)
Truist Financial Corporation	January 2026		1.93	%		25,000		826		25,000		(768	)
Capital One, National Association	April 2026		2.68	%		15,000		121		15,000		(941	)
Capital One, National Association	July 2026		1.32	%		35,000		2,076		35,000		(205	)
Bank of Montreal	December 2026		2.33	%		10,000		233		10,000		(538	)
Bank of Montreal	December 2026		1.99	%		25,000		941		25,000		(936	)
Toronto-Dominion Bank	March 2027		2.46	%		15,531		660		—		—
Wells Fargo Bank, N.A.	April 2027		2.72	%		25,000		170		25,000		(1,887	)
Bank of Montreal	December 2027		2.37	%		25,000		637		25,000		(1,570	)
Capital One, National Association	December 2027		2.37	%		25,000		616		25,000		(1,575	)
Wells Fargo Bank, N.A.	January 2028		2.37	%		75,000		1,864		75,000		(4,741	)
Bank of Montreal	May 2029		2.09	%		25,000		1,195		25,000		(1,316	)
Regions Bank	May 2029		2.11	%		25,000		1,143		25,000		(1,356	)
Regions Bank	June 2029		2.03	%		25,000		1,265		25,000		(1,222	)
U.S. Bank National Association	June 2029		2.03	%		25,000		1,284		25,000		(1,220	)
U.S. Bank National Association	August 2029		1.35	%		25,000		2,407		25,000		(9	)
Regions Bank	March 2032		2.69	%		15,531		1,103		—		—
U.S. Bank National Association	March 2032		2.70	%		15,531		1,126		—		—
Bank of Montreal	March 2034		2.81	%		31,064		2,435		—		—
					$	717,657	$	26,562	$	640,000	$	(27,171	)

Total Amounts Recognized and Location of Gain (Loss) in Condensed Consolidated Statement of Income and Comprehensive Income (Loss), from Converting from Variable Rates to Fixed Rates

The total amounts recognized, and the location in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income, from converting from variable rates to fixed rates under these agreements were as follows:

	Amount of Gain (Loss)			Reclassification from			Total Interest Expense
	Recognized in			Accumulated Other			Presented in the Condensed
(in thousands)	Accumulated Other			Comprehensive Income (Loss)			Consolidated Statements of
	Comprehensive				Amount of		Income and Comprehensive
For the Three Months Ended June 30,	Income (Loss)			Location	Loss		Income
2022	$	18,772		Interest expense	$	3,122	$	17,888
2021		(2,911	)	Interest expense		4,039		15,430

	Amount of Gain		Reclassification from			Total Interest Expense
	Recognized in		Accumulated Other			Presented in the Condensed
	Accumulated Other		Comprehensive Income (Loss)			Consolidated Statements of
(in thousands)	Comprehensive			Amount of		Income and Comprehensive
For the Six Months Ended June 30,	Income (Loss)		Location	Loss		Income
2022	$	53,733	Interest expense	$	6,987	$	34,784
2021		25,769	Interest expense		8,055		31,538

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Non-Controlling Interests (Tables)

6 Months Ended

Jun. 30, 2022

Noncontrolling Interest [Abstract]

Schedule of OP Units Exchanged for Shares of Common Stock

The following table summarizes OP Units exchanged for shares of common stock:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
OP Units exchanged for shares of common stock		—		1,127		—		1,165
Value of units exchanged	$	—	$	17,859	$	—	$	18,465

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Equity (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Summary of Common Shares under Company's ATM Program

The following table presents information about the Company's ATM Program activity:

	For the Three Months Ended		For the Six Months Ended
(in thousands, except per share amounts)	June 30, 2022		June 30, 2022
Number of common shares issued		3,236		9,509
Weighted average sale price per share	$	21.42	$	21.69
Net proceeds	$	68,321	$	202,647
Gross proceeds		69,313		205,857

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2022

Restricted Stock Awards

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Restricted Stock

The following table presents information about the Company's RSAs:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Compensation cost (a)	$	877	$	728	$	1,487	$	2,423
Dividends declared on unvested RSAs		106		97		203	201
Fair value of shares vested during the period		—		774		3,209		3,296

(a)Includes $0.1 million compensation cost recognized from RSAs granted to non-employee directors for the three and six months ended June 30, 2022.

(in thousands, except recognition period)	June 30, 2022		December 31, 2021
Unamortized value of RSAs	$	6,794	$	4,715
Weighted average amortization period (in years)		2.5		2.4

Summary of Restricted Stock Activity

The following table presents information about the Company's RSA activity:

	For the Three Months Ended June 30,
	2022					2021
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share		Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested at beginning of period		367		$	20.33		416		$	19.62
Granted		33			20.23		2			19.76
Vested		—			—		(40	)		19.81
Forfeited		(8	)		19.95		—			—
Unvested at end of period		392			20.33		378			19.60

	For the Six Months Ended June 30,
	2022					2021
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share		Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested at beginning of period		372		$	19.62		341		$	20.50
Granted		175			21.39		201			18.67
Vested		(146	)		19.80		(164	)		20.15
Forfeited		(9	)		20.06		—			—
Unvested at end of period		392			20.33		378			19.60

Performance-based Restricted Stock Units

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Restricted Stock

The following tables present information about the Company's PRSUs:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands, except recognition period)	2022		2021		2022		2021
Compensation cost	$	504	$	223	$	823	$	297

	June 30, 2022		December 31, 2021
Unamortized value of PRSUs	$	4,490	$	1,931
Weighted average amortization period (in years)		2.3		2.2

Summary of Restricted Stock Activity

The following table presents information about the Company's PRSU activity:

	For the Three Months Ended June 30,
	2022					2021
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share		Number of Shares		Weighted Average Grant Date Fair Value per Share
Unvested at beginning of period		232		$	26.25		110	$	24.40
Granted		—			—		—		—
Vested		—			—		—		—
Forfeited		(1	)		27.93		—		—
Unvested at end of period		231			26.25		110		24.40

	For the Six Months Ended June 30,
	2022					2021
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share		Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested at beginning of period		110		$	24.40		—		$	—
Granted		122			27.93		132			24.40
Vested		—			—		—			—
Forfeited		(1	)		27.93		(22	)		24.40
Unvested at end of period		231			26.25		110			24.40

XML

Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Summary of Components used in Calculation of Basic and Diluted Earnings per Share

The following table summarizes the components used in the calculation of basic and diluted earnings per share ("EPS"):

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(in thousands, except per share amounts)	2022			2021			2022			2021
Basic earnings:
Net earnings attributable to Broadstone Net Lease, Inc. common    shareholders	$	33,516		$	21,214		$	60,274		$	43,437
Less: earnings allocated to unvested restricted shares		(105	)		(97	)		(202	)		(201	)
Net earnings used to compute basic earnings per common share	$	33,411		$	21,117		$	60,072		$	43,236
Diluted earnings:
Net earnings used to compute basic earnings per share	$	33,411		$	21,117		$	60,072		$	43,236
Net earnings attributable to non-controlling interests		2,036			1,606			3,719			3,343
Net earnings used to compute diluted earnings per common share	$	35,447		$	22,723		$	63,791		$	46,579
Weighted average number of common shares outstanding		169,933			146,506			167,072			146,089
Less: weighted average unvested restricted shares (a)		(378	)		(387	)		(374	)		(361	)
Weighted average number of common shares outstanding used in    basic earnings per common share		169,555			146,119			166,698			145,728
Effects of restricted stock units (b)		378			219			325			147
Effects of convertible membership units (c)		10,323			11,092			10,323			11,240
Weighted average number of common shares outstanding used in    diluted earnings per common share		180,256			157,430			177,346			157,115
Basic earnings per share	$	0.20		$	0.14		$	0.36		$	0.30
Diluted earnings per share	$	0.20		$	0.14		$	0.36		$	0.30

(a)Represents the weighted average effects of 391,187 and 378,516 unvested restricted shares of common stock as of June 30, 2022 and 2021, respectively, which will be excluded from the computation of earnings per share until they vest. The shares of restricted common stock were not included in the calculation of diluted earnings per share, as the effect of doing so would have been anti-dilutive.

(b)Represents the weighted average effects of shares of common stock to be issued as though the end of the period were the end of the performance period (see Note 15).

Represents the weighted average effects of 10,323,206 and 10,481,872 OP Units outstanding at June 30, 2022 and 2021, respectively. OP Units are included in the diluted earnings per share calculation. However, because such OP Units would also require that the share of the net income attributable to such OP units also be added back to net income, there is no effect to EPS.

XML

Business Description - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2022 Property Provinces
Business Description [Line Items]
Date of incorporation	Oct. 18, 2007
Number of leased commercial properties owned	764
UNITED STATES
Business Description [Line Items]
Number of leased commercial properties owned	757
Number of States in which properties located	44
Canada
Business Description [Line Items]
Number of leased commercial properties owned	7
Number of provinces | Provinces	4

XML

Business Description - Summary of Outstanding Equity and Economic Ownership Interest (Detail) - shares shares in Thousands	Jun. 30, 2022	Dec. 31, 2021
Broadstone Net Lease, LLC
Business Description [Line Items]
Percent ownership of OP, Shares of Common Stock	94.30%	94.00%
Percent ownership of OP, OP Units	5.70%	6.00%
Percent ownership of OP, Total Diluted Shares	100.00%	100.00%
Ownership Interest
Business Description [Line Items]
Shares of Common Stock	172,023	162,383
OP Units	10,323	10,323
Total Diluted Shares	182,346	172,706

XML

Summary of Significant Accounting Policies - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2022 USD ($) shares
Finite-Lived Intangible Assets [Line Items]
Additional impairment charges | $	$ 0
Maximum [Member] | Equity Incentive Plan [Member]
Finite-Lived Intangible Assets [Line Items]
Number of restricted stock awards issued | shares	9,000,000

XML

Significant Accounting Policies - Summary of Impairment Charge (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) Customer	Jun. 30, 2021 USD ($) Customer	Jun. 30, 2022 USD ($) Customer	Jun. 30, 2021 USD ($) Customer
Impaired Long-Lived Assets Held and Used [Line Items]
Number of properties | Customer	1	0	1	1
Impairment charge | $	$ 1,380	$ 0	$ 1,380	$ 2,012

XML

Summary of Significant Accounting Policies - Summary of Components of Restricted Cash (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Cash and Cash Equivalents [Abstract]
Escrow funds and other	$ 6,634	$ 6,100
Undistributed 1031 proceeds	5,529	0
Restricted cash	$ 12,163	$ 6,100	$ 8,021	$ 10,242

XML

Summary of Significant Accounting Policies - Summary of Rents Received in Advance (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Rent received in advance	$ 13,533	$ 15,162

XML

Summary of Significant Accounting Policies - Balances of Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest rate swap, assets	$ 26,562
Interest rate swap, liabilities		(27,171)
Fair Value, Measurements, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest rate swap, assets	26,562
Interest rate swap, liabilities		(27,171)
Fair Value, Measurements, Recurring | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest rate swap, assets	0
Interest rate swap, liabilities		0
Fair Value, Measurements, Recurring | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest rate swap, assets	26,562
Interest rate swap, liabilities		(27,171)
Fair Value, Measurements, Recurring | Fair Value Inputs Level3 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest rate swap, assets	$ 0
Interest rate swap, liabilities		$ 0

XML

Summary of Significant Accounting Policies - Summary of Carrying Amount Reported on Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Summary Of Significant Accounting Policies [Abstract]
Carrying amount	$ 1,856,377	$ 1,699,160
Fair value	$ 1,758,160	$ 1,785,701

XML

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended			6 Months Ended
	Jun. 16, 2021	Jun. 30, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Related Party Transaction [Line Items]
Number of OP Units Issued During Period	247,899
Issuance of shares common stock upon conversion of OP units						1,164,461
Conversion of OP Units to shares of common stock						$ 18.5
Number of OP units exchanged		0	1,127,000	38,000	(0)	1,164,461
Affiliated Entity [Member]
Related Party Transaction [Line Items]
Issuance of shares common stock upon conversion of OP units			1,019,874			1,019,874
Conversion of OP Units to shares of common stock			$ 16.2			$ 16.2
Number of OP units exchanged			1,019,874			1,019,874
Tranche One
Related Party Transaction [Line Items]
Issuance of shares of common stock, shares	145,195
Number of OP Units Issued During Period	247,899
Payment of cash at earnout milestone			$ 1.9			$ 1.9

XML

Internalization - Additional Information (Detail) - Merger Agreement $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) Tranche
Internalization [Line Items]
Number of tranches | Tranche	4
VWAP per REIT Share Days	40 days
Maximum
Internalization [Line Items]
Additional consideration payable	$ 75.0
Tranche One
Internalization [Line Items]
Additional consideration payable	10.0
Tranche Two
Internalization [Line Items]
Additional consideration payable	15.0
Tranche Three
Internalization [Line Items]
Additional consideration payable	25.0
Tranche Four
Internalization [Line Items]
Additional consideration payable	$ 25.0

XML

Internalization - Summary of Earnout Tranches, Applicable VWAP of REIT Share and Applicable Earnout Period (Details) - USD ($) $ / shares in Units, $ in Thousands			6 Months Ended
		Jun. 16, 2021	Jun. 30, 2022	Dec. 31, 2021
Internalization [Line Items]
Shares of Common stock issued			172,023,000	162,383,000
Op Units Issued		247,899
Tranche One
Internalization [Line Items]
Op Units Issued		247,899
Merger Agreement | Tranche One
Internalization [Line Items]
Shares of Common stock issued			145,000
Op Units Issued			248,000
Cash Paid	[1]		$ 1,926
40-Day VWAP of a REIT Share			$ 22.50
Achievement Date			Jun. 16, 2021
Merger Agreement | Tranche Two
Internalization [Line Items]
Shares of Common stock issued			218,000
Op Units Issued			371,000
Cash Paid	[1]		$ 2,888
40-Day VWAP of a REIT Share			$ 23.75
Achievement Date			Jul. 14, 2021
Merger Agreement | Tranche Three
Internalization [Line Items]
Shares of Common stock issued			363,000
Op Units Issued			620,000
Cash Paid			$ 4,117
40-Day VWAP of a REIT Share			$ 24.375
Achievement Date			Sep. 21, 2021
Merger Agreement | Tranche Four
Internalization [Line Items]
Shares of Common stock issued			363,000
Op Units Issued			620,000
Cash Paid			$ 4,117
40-Day VWAP of a REIT Share			$ 25.00
Achievement Date			Sep. 21, 2021

[1] Cash payments include amounts earned for dividends.

XML

Acquisitions of Rental Property - Acquisitions of Rental Property Closed - (Detail) $ in Thousands																															1 Months Ended	6 Months Ended
	Jul. 08, 2022 USD ($) Customer	Jul. 07, 2022 USD ($) Customer	Jul. 01, 2022 USD ($) Customer	Jun. 30, 2022 USD ($) Customer	Jun. 29, 2022 USD ($) Customer	Jun. 21, 2022 USD ($) Customer	Jun. 15, 2022 USD ($) Customer	Jun. 13, 2022 USD ($) Customer	Jun. 07, 2022 USD ($) Customer	May 16, 2022 USD ($) Customer	Apr. 19, 2022 USD ($) Customer	Apr. 13, 2022 USD ($) Customer	Apr. 12, 2022 USD ($) Customer	Mar. 31, 2022 USD ($) Customer	Mar. 04, 2022 USD ($) Customer	Feb. 28, 2022 USD ($) Customer	Feb. 15, 2022 USD ($) Customer	Feb. 10, 2022 USD ($) Customer	Jan. 07, 2022 USD ($) Customer	Jun. 30, 2021 USD ($) Customer	Jun. 28, 2021 USD ($) Customer	Jun. 25, 2021 USD ($) Customer	Jun. 09, 2021 USD ($) Customer	Jun. 04, 2021 USD ($) Customer	Mar. 31, 2021 USD ($) Customer	Mar. 30, 2021 USD ($) Customer	Mar. 11, 2021 USD ($) Customer	Feb. 26, 2021 USD ($)		Feb. 05, 2021 USD ($) Customer	Aug. 03, 2022 USD ($) Customer	Jun. 30, 2022 USD ($) Customer		Jun. 30, 2021 USD ($) Customer
Business Acquisition [Line Items]
Number of Properties | Customer				42																62												42		62
Real Estate Acquisition Price | $																																$ 374,968	[1]	$ 281,280	[2]
Subsequent Event
Business Acquisition [Line Items]
Number of Properties | Customer																															14
Real Estate Acquisition Price | $																															$ 80,223
Healthcare
Business Acquisition [Line Items]
Property Type					Healthcare															Healthcare	Healthcare				Healthcare					Healthcare
Number of Properties | Customer					1															7	4				3					1				7
Real Estate Acquisition Price | $					$ 12,467															$ 30,750	$ 15,300				$ 14,140					$ 4,843
Restaurant
Business Acquisition [Line Items]
Property Type														Restaurant														Restaurant
Number of Properties | Customer														16
Real Estate Acquisition Price | $														$ 99,587														$ 181	[3]
Retail
Business Acquisition [Line Items]
Property Type							Retail	Retail	Retail	Retail	Retail		Retail		Retail		Retail		Retail	Retail		Retail		Retail		Retail	Retail
Number of Properties | Customer							1	1	1	1	1		1		6		1		2	1		8		2		11	13							1
Real Estate Acquisition Price | $							$ 1,884	$ 1,638	$ 11,510	$ 2,264	$ 1,780		$ 1,680		$ 79,061		$ 1,341		$ 2,573	$ 1,279		$ 12,131		$ 19,420		$ 41,324	$ 26,834
Retail | Subsequent Event
Business Acquisition [Line Items]
Property Type		Retail	Retail
Number of Properties | Customer		1	2
Real Estate Acquisition Price | $		$ 2,171	$ 3,052
Industrial
Business Acquisition [Line Items]
Property Type				Industrial		Industrial						Industrial	Industrial			Industrial		Industrial					Industrial
Number of Properties | Customer				1		5						1	1			1		1					1									1
Real Estate Acquisition Price | $				$ 29,500		$ 78,500						$ 16,250	$ 7,522			$ 5,678		$ 21,733					$ 8,500
Industrial | Subsequent Event
Business Acquisition [Line Items]
Property Type	Industrial
Number of Properties | Customer	11
Real Estate Acquisition Price | $	$ 75,000
Industrial
Business Acquisition [Line Items]
Property Type																							Industrial
Number of Properties | Customer																							11
Real Estate Acquisition Price | $																							$ 106,578

[1] Acquisition price excludes capitalized acquisition costs of $3.1 million and a $17.4 million building expansion agreed to as a forward commitment in connection with a prior acquisition (see Note 18).

[2] Acquisition price excludes capitalized acquisition costs of $3.0 million.

[3] Acquisition of additional land adjacent to an existing property.

XML

Acquisitions of Rental Property - Acquisitions of Rental Property Closed (Parenthetical) - (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Business Combinations [Abstract]
Acquisition costs capitalized	$ 3.1	$ 3.0
Tenant's building expansion	$ 17.4

XML

Acquisitions of Rental Property - Purchase Price Allocation for Real Estate Acquisitions (Detail) - USD ($) $ in Thousands		Jun. 30, 2022	Jun. 30, 2021
Business Acquisition [Line Items]
Non-real estate liabilities assumed		$ (8,051)	$ 0
Business combination, recognized identifiable assets acquired and liabilities assumed, assets		378,048	284,325
Land
Business Acquisition [Line Items]
Business combination, recognized identifiable assets acquired and liabilities assumed, property, plant, and equipment		77,088	48,477
Land Improvements
Business Acquisition [Line Items]
Business combination, recognized identifiable assets acquired and liabilities assumed, property, plant, and equipment		26,002	15,844
Buildings and Improvements
Business Acquisition [Line Items]
Business combination, recognized identifiable assets acquired and liabilities assumed, property, plant, and equipment		253,500	197,064
Acquired In-Place Leases
Business Acquisition [Line Items]
Business combination, recognized identifiable assets acquired and liabilities assumed, Intangible assets	[1]	29,585	22,729
Acquired Above-Market Lease
Business Acquisition [Line Items]
Business combination, recognized identifiable assets acquired and liabilities assumed, Intangible assets	[2]	0	211
Acquired Below-Market Leases
Business Acquisition [Line Items]
Business combination, recognized identifiable assets acquired and liabilities assumed, Intangible assets	[3]	$ 76	$ 0

[1] The weighted average amortization period for acquired in-place leases is 20 years and 14 years for acquisitions completed during the six months ended June 30, 2022 and 2021, respectively.

[2] The weighted average amortization period for the acquired above-market leases is 10 years for acquisitions completed during the six months ended June 30, 2021. There were no above-market leases acquired during the six months ended June 30, 2022.

[3] The weighted average amortization period for acquired below-market leases is nine years for acquisitions completed during the six months ended June 30, 2022. There were no below-market leases acquired during the six months ended June 30, 2021. (g) Excludes $17.4 million building expansion agreed to as a forward commitment in connection with a prior acquisition (see Note 18).

XML

Acquisitions of Rental Property - Purchase Price Allocation for Real Estate Acquisitions (Parenthetical) - (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Business Acquisition [Line Items]
Tenant's building expansion	$ 17.4
Acquired In-Place Leases
Business Acquisition [Line Items]
Weighted average amortization period	20 years	14 years
Acquired Above-Market Lease
Business Acquisition [Line Items]
Weighted average amortization period	0 years	10 years
Acquired Below-Market Leases
Business Acquisition [Line Items]
Weighted average amortization period	9 years	0 years

XML

Sale of Real Estate - Schedule of Sale of Real Estate (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) Property	Jun. 30, 2021 USD ($) Property	Jun. 30, 2022 USD ($) Property	Jun. 30, 2021 USD ($) Property
Real Estate [Line Items]
Number of properties disposed | Property	3	11	4	19
Aggregate sale price	$ 11,889	$ 22,276	$ 17,101	$ 45,338
Aggregate carrying value	(7,311)	(17,201)	(11,135)	(34,573)
Gain on sale of real estate	4,071	3,838	5,267	8,571
Real Estate
Real Estate [Line Items]
Additional sales expenses	(507)	(1,237)	(699)	(2,194)
Gain on sale of real estate	$ 4,071	$ 3,838	$ 5,267	$ 8,571

XML

Investment in Rental Property and Lease Arrangements - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2022 Property1 PropertyNumber Property
Lessor Lease Description [Line Items]
Number of leased commercial properties owned | Property	764
Number of real estate properties under operating leases | PropertyNumber	751
Number of real estate properties under direct financing leases | Property1	10
Number of real estate properties under sales-type leases | Property	1
Number of real estate properties under direct financing leases that include land option | Property1	3
Lessee, operating lease, existence of option to extend	true
Lessee, finance lease, existence of option to extend	true
Minimum
Lessor Lease Description [Line Items]
Lessor operating lease, initial terms	10 years
Lessor direct financing leases, initial terms	10 years
Maximum
Lessor Lease Description [Line Items]
Lessor operating lease, initial terms	20 years
Lessor direct financing leases, initial terms	20 years

XML

Investment in Rental Property and Lease Arrangements - Rental Property Subject to Non-cancelable Operating Leases (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Property Subject To Or Available For Operating Lease [Line Items]
Rental property subject to non-cancelable operating leases, gross	$ 4,565,621	$ 4,205,191
Less accumulated depreciation	(479,952)	(430,141)
Accounted for using the operating method, net	$ 4,085,669	$ 3,775,050

XML

Investment in Rental Property and Lease Arrangements - Summary of Depreciation Expense on Investment in Rental Property (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Leases [Abstract]
Depreciation	$ 27,730	$ 24,144	$ 54,388	$ 47,887

XML

Investment in Rental Property and Lease Arrangements - Estimated Lease Payments to be Received under Non-cancelable Operating Leases (Detail) $ in Thousands	Jun. 30, 2022 USD ($)
Lessor, Operating Lease, Payments to be Received, Fiscal Year Maturity [Abstract]
Remainder of 2022	$ 178,218
2023	359,960
2024	357,102
2025	350,807
2026	341,436
Thereafter	2,695,940
Estimated lease payments to be received under non-cancelable operating leases	$ 4,283,463

XML

Investment in Rental Property and Lease Arrangements - Net Investment in Direct Financing Leases (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Undiscounted estimated lease payments to be received	$ 40,983	$ 42,602
Estimated unguaranteed residual values	15,203	15,203
Unearned revenue	(27,473)	(28,893)
Reserve for credit losses	(129)	(130)
Net investment in direct financing leases	$ 28,584	$ 28,782

XML

Investment in Rental Property and Lease Arrangements - Undiscounted Estimated Lease Payments to be Received under Non-cancelable Direct Financing Leases (Detail) $ in Thousands	Jun. 30, 2022 USD ($)
Capital Leases, Future Minimum Payments Receivable, Fiscal Year Maturity [Abstract]
Remainder of 2022	$ 1,622
2023	3,304
2024	3,361
2025	3,475
2026	3,547
Thereafter	25,674
Undiscounted estimated lease payments to be received under non-cancelable direct financing leases	$ 40,983

XML

Investment in Rental Property and Lease Arrangements - Summary of Amounts Reported as Lease Revenues Net on the Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Contractual rental amounts billed for operating leases	$ 87,505	$ 75,011	$ 171,901	$ 148,256
Adjustment to recognize contractual operating lease billings on a straight-line basis	5,090	4,724	10,111	9,533
Net write-offs of accrued rental income	0	0	(1,326)	(442)
Variable rental amounts earned	291	114	477	205
Earned income from direct financing leases	721	728	1,444	1,458
Interest income from sales-type leases	15	15	29	29
Operating expenses billed to tenants	4,263	4,196	8,998	8,584
Other income from real estate transactions	134	28	176	33
Adjustment to revenue recognized for uncollectible rental amounts billed, net	(6)	(57)	44	(199)
Total Lease revenues, net	$ 98,013	$ 84,759	$ 191,854	$ 167,457

XML

Intangible Assets and Liabilities - Schedule of Intangible Assets and Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Lease intangibles:
Intangible lease assets, net	$ 316,119	$ 303,642
Acquired below-market leases	105,293	105,310
Less accumulated amortization	(38,429)	(34,714)
Intangible lease liabilities, net	66,864	70,596
Leasing fees	14,650	14,786
Less accumulated amortization	(5,533)	(5,145)
Leasing fees, net	9,117	9,641
Acquired Above-Market Leases
Lease intangibles:
Intangible lease assets, gross	46,772	47,147
Less accumulated amortization	(18,052)	(16,807)
Intangible lease assets, net	28,720	30,340
Acquired In-Place Leases
Lease intangibles:
Intangible lease assets, gross	407,993	380,766
Less accumulated amortization	(120,594)	(107,464)
Intangible lease assets, net	$ 287,399	$ 273,302

XML

Intangible Assets and Liabilities - Schedule of Amortization of Intangible Lease Assets and Liabilities (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Acquired In-Place Leases | Depreciation and Amortization
Finite Lived Intangible Assets [Line Items]
Acquired in-place leases and leasing fees	$ 7,749	$ 7,058	$ 15,350	$ 14,005
Above and Below Market Leases | Lease Revenues, Net
Finite Lived Intangible Assets [Line Items]
Acquired in-place leases and leasing fees	$ 1,170	$ 665	$ 2,331	$ 1,418

XML

Intangible Assets and Liabilities - Schedule of Amortizable Intangible Assets (Detail) $ in Thousands	Jun. 30, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2022	$ 13,338
2023	26,512
2024	25,752
2025	24,455
2026	23,105
Thereafter	145,210
Total	$ 258,372

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Unsecured Credit Agreements - Summary of Unsecured Credit Agreements (Detail) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Debt instrument, interest rate		6.00%	5.00%
Total unsecured debt		$ 1,856,377	$ 1,699,160
Long-term Debt		1,856,377
Unsecured Debt
Debt Instrument [Line Items]
Long-term Debt		1,751,933	1,592,472
Unsecured Debt | Term Loan [Member]
Debt Instrument [Line Items]
Total unsecured debt		590,000	650,000
Debt issuance costs, net		2,902	3,329
Long-term Debt		587,098	646,671
Unsecured Debt | Senior Notes [Member]
Debt Instrument [Line Items]
Total unsecured debt		850,000	850,000
Unamortized debt issuance costs and original issuance discount, net			(6,199)
Long-term Debt		$ 844,178	843,801
Unsecured Debt | Unsecured Revolving Credit Facility
Debt Instrument [Line Items]
Interest Rate	[1],[2],[3]	Applicable reference rate + 0.85% (a) (b) (c)
Maturity Date		2026-03
Basis spread on variable rate	[1],[2],[3]	0.85%
Total unsecured debt		$ 320,657	102,000
Unsecured Debt | Senior Notes
Debt Instrument [Line Items]
Unamortized debt issuance costs and original issuance discount, net		$ 5,822
Unsecured Debt | 2022 Unsecured Term Loan
Debt Instrument [Line Items]
Interest Rate	[1]	one-month LIBOR + 1.00% (c)
Maturity Date	[4]	2022-02
Total unsecured debt			60,000
Unsecured Debt | 2022 Unsecured Term Loan | 1 Month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	[1]	1.00%
Unsecured Debt | 2024 Unsecured Term Loan
Debt Instrument [Line Items]
Interest Rate	[1]	one-month LIBOR + 1.00% (c)
Maturity Date		2024-06
Total unsecured debt		$ 190,000	190,000
Unsecured Debt | 2024 Unsecured Term Loan | 1 Month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	[1]	1.00%
Unsecured Debt | 2026 Unsecured Term Loan
Debt Instrument [Line Items]
Interest Rate	[1]	one-month LIBOR + 1.00% (c)
Maturity Date		2026-02
Total unsecured debt		$ 400,000	400,000
Unsecured Debt | 2026 Unsecured Term Loan | 1 Month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	[1]	1.00%
Unsecured Debt | 2027 Senior Unsecured Notes | Senior Guaranteed Notes Series A
Debt Instrument [Line Items]
Debt instrument, interest rate		4.84%
Maturity Date		2027-04
Total unsecured debt		$ 150,000	150,000
Unsecured Debt | 2028 Senior Unsecured Notes | Senior Guaranteed Notes Series B
Debt Instrument [Line Items]
Debt instrument, interest rate		5.09%
Maturity Date		2028-07
Total unsecured debt		$ 225,000	225,000
Unsecured Debt | 2030 Senior Unsecured Notes | Senior Guaranteed Notes Series C
Debt Instrument [Line Items]
Debt instrument, interest rate		5.19%
Maturity Date		2030-07
Total unsecured debt		$ 100,000	100,000
Unsecured Debt | 2031 Senior Unsecured Public Notes | Senior Notes
Debt Instrument [Line Items]
Debt instrument, interest rate		2.60%
Maturity Date		2031-09
Total unsecured debt		$ 375,000	$ 375,000

[1] At June 30, 2022 and December 31, 2021, one-month LIBOR was 1.79% and 0.10%, respectively.

[2] At June 30, 2022, a balance of $243.0 million was subject to the one-month Secured Overnight Financing Rate of 1.69%. The remaining balance includes $100 million CAD borrowings remeasured to $77.7 million USD, which was subject to the one-month Canadian Dollar Offered Rate of 2.23%.

[3] At December 31, 2021, interest rate was one-month LIBOR plus 1.00%

[4] The 2022 Unsecured Term Loan was paid in full in February 2022, with borrowings from the unsecured revolving credit facility.

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Unsecured Credit Agreements - Summary of Unsecured Credit Agreements (Parenthetical) (Detail) $ in Thousands, $ in Millions		6 Months Ended	12 Months Ended
		Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2022 CAD ($)
Debt Instrument [Line Items]
Long-term Debt		$ 1,856,377
Unsecured Debt
Debt Instrument [Line Items]
Long-term Debt		$ 1,751,933	$ 1,592,472
Unsecured Debt | 1 Month LIBOR
Debt Instrument [Line Items]
Interest rate		1.79%	0.10%	1.79%
Unsecured Debt | 1 Month LIBOR | 2022 Unsecured Term Loan
Debt Instrument [Line Items]
Basis spread on variable rate	[1]	1.00%
Unsecured Debt | 1 Month LIBOR | 2024 Unsecured Term Loan
Debt Instrument [Line Items]
Basis spread on variable rate	[1]	1.00%
Unsecured Debt | 1 Month LIBOR | 2026 Unsecured Term Loan
Debt Instrument [Line Items]
Basis spread on variable rate	[1]	1.00%
Unsecured Debt | 1 Month LIBOR | Revolving Credit Facilities
Debt Instrument [Line Items]
Basis spread on variable rate			1.00%
Unsecured Debt | 1 Month Canadian Dollar
Debt Instrument [Line Items]
Long-term Debt		$ 77,700		$ 100
Interest rate		2.23%		2.23%
Unsecured Debt | 1 Month Secured Overnight
Debt Instrument [Line Items]
Long-term Debt		$ 243,000
Interest rate		1.69%		1.69%

[1] At June 30, 2022 and December 31, 2021, one-month LIBOR was 1.79% and 0.10%, respectively.

XML

Unsecured Credit Agreements - Additional Information (Detail) - USD ($)		3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 28, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Debt Instrument [Line Items]
Weighted Average Fixed Rate		3.33%		3.33%
Total unsecured debt		$ 1,856,377,000		$ 1,856,377,000		$ 1,699,160,000
Debt Instrument, Interest Rate, Stated Percentage		6.00%		6.00%		5.00%
Debt Instrument Maturity Date	Mar. 31, 2026
Debt issuance costs incurred					$ 100,000
Cost of debt extinguishment					(126,000)
LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate						0.825%
LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate						1.55%
Unsecured Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Total unsecured debt	$ 1,000,000,000.0
Applicable margin of facility fee percentage	0.20%
Debt issuance costs		$ 0		$ 3,800,000
Unsecured Revolving Credit Facility [Member] | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.725%
Unsecured Revolving Credit Facility [Member] | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	1.40%
Unsecured Revolving Credit Facility [Member] | Euros and Canadian Dollars
Debt Instrument [Line Items]
Total unsecured debt	$ 500,000,000.0
2026 Unsecured Term Loan
Debt Instrument [Line Items]
Debt issuance costs			$ 0		1,000,000.0
Modification of Existing Debt
Debt Instrument [Line Items]
Debt issuance costs					$ 900,000
Interest Rate Swap
Debt Instrument [Line Items]
Weighted Average Fixed Rate		2.11%		2.11%

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Unsecured Credit Agreements - Summary of Debt Issuance Cost Amortization (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Debt Disclosure [Abstract]
Debt issuance costs amortization	$ 900	$ 956	$ 1,756	$ 1,870

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Mortgages - Summary of Mortgages (Detail) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Debt instrument, interest rate		6.00%	5.00%
Carrying amount		$ 1,856,377	$ 1,699,160
Mortgages, net		95,453	96,846
Secured Debt
Debt Instrument [Line Items]
Carrying amount		95,720	97,160
Debt issuance costs, net		$ (267)	(314)
Wilmington Trust National Association, Due February 28 | Secured Debt
Debt Instrument [Line Items]
Origination Date	[1],[2],[3],[4]	2019-04
Maturity Date	[1],[2],[3],[4]	2028-02
Debt instrument, interest rate	[1],[2],[3],[4]	4.92%
Carrying amount	[1],[2],[3],[4]	$ 46,142	46,760
Wilmington Trust National Association, Due August 25 | Secured Debt
Debt Instrument [Line Items]
Origination Date	[1],[2],[4],[5]	2018-06
Maturity Date	[1],[2],[4],[5]	2025-08
Debt instrument, interest rate	[1],[2],[4],[5]	4.36%
Carrying amount	[1],[2],[4],[5]	$ 19,355	19,557
PNC Bank | Secured Debt
Debt Instrument [Line Items]
Origination Date	[1],[2]	2016-10
Maturity Date	[1],[2]	2026-11
Debt instrument, interest rate	[1],[2]	3.62%
Carrying amount	[1],[2]	$ 16,886	17,094
T2 Durham I, LLC | Secured Debt
Debt Instrument [Line Items]
Origination Date	[2],[6]	2021-07
Maturity Date	[2],[6]	2024-07
Interest Rate	[2],[6]	Greater of Prime + 1.25% or 5.00%
Carrying amount	[2],[6]	$ 7,500	7,500
T2 Durham I, LLC | Greater of Prime | Secured Debt | Maximum
Debt Instrument [Line Items]
Debt instrument, interest rate	[2],[6]	5.00%
T2 Durham I, LLC | Greater of Prime | Secured Debt | Minimum
Debt Instrument [Line Items]
Debt instrument, interest rate	[2],[6]	1.25%
Aegon | Secured Debt
Debt Instrument [Line Items]
Origination Date	[2],[7]	2012-04
Maturity Date	[2],[7]	2023-10
Debt instrument, interest rate	[2],[7]	6.38%
Carrying amount	[2],[7]	$ 5,837	$ 6,249

[1] Debt secured by guaranty of the OP.

[2] Debt secured by related rental property and lease rents.

[3] Mortgage was assumed in April 2019 as part of the acquisition of the related property. The debt was recorded at fair value at the time of assumption.

[4] Non-recourse debt includes the indemnification/guaranty of the Corporation and/or OP pertaining to fraud, environmental claims, insolvency, and other matters.

[5] Mortgage was assumed in June 2018 as part of the acquisition of the related property. The debt was recorded at fair value at the time of assumption.

[6] Mortgage is subject to interest at a daily floating annual rate equal to the Prime Rate plus 1.25%, but no less than 5.00% per annum. At June 30, 2022 and December 31, 2021, the interest rate was 6.00% and 5.00%, respectively.

[7] Mortgage was assumed in April 2012 as part of the acquisition of the related property. The debt was recorded at fair value at the time of the assumption.

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Mortgages - Summary of Mortgages (Parenthetical) (Details)	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Debt instrument, interest rate	6.00%	5.00%
Prime Rate plus 1.25% | Maximum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	5.00%
Prime Rate plus 1.25% | Minimum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.25%

XML

Mortgages - Additional Information (Detail) $ in Millions	Jun. 30, 2022 USD ($)
Debt Disclosure [Abstract]
Investment in rental property pledged as collateral	$ 159.5

XML

Mortgages - Schedule of Estimated Future Principal Payments (Detail) $ in Thousands	Jun. 30, 2022 USD ($)
Debt Disclosure [Abstract]
Remainder of 2022	$ 1,466
2023	7,582
2024	199,760
2025	20,195
2026	737,500
Thereafter	889,874
Long-term Debt	$ 1,856,377

XML

Interest Rate Swaps - Summary of Interest-rate Swap Agreements (Detail) - Interest Rate Swap - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Derivative [Line Items]
Notional Amount	$ 717,657	$ 640,000
Fair Value	$ 26,562	(27,171)
Wells Fargo Bank One
Derivative [Line Items]
Derivative, Maturity date	2024-10
Derivative, Fixed rate	2.72%
Notional Amount	$ 15,000	15,000
Fair Value	$ 110	(702)
Capital One, National Association One
Derivative [Line Items]
Derivative, Maturity date	2024-12
Derivative, Fixed rate	1.58%
Notional Amount	$ 15,000	15,000
Fair Value	$ 510	(241)
Bank of Montreal One
Derivative [Line Items]
Derivative, Maturity date	2025-01
Derivative, Fixed rate	1.91%
Notional Amount	$ 25,000	25,000
Fair Value	$ 672	(649)
Truist Financial Corporation One
Derivative [Line Items]
Derivative, Maturity date	2025-04
Derivative, Fixed rate	2.20%
Notional Amount	$ 25,000	25,000
Fair Value	$ 520	(905)
Bank of Montreal Two
Derivative [Line Items]
Derivative, Maturity date	2025-07
Derivative, Fixed rate	2.32%
Notional Amount	$ 25,000	25,000
Fair Value	$ 459	(1,049)
Truist Financial Corporation Two
Derivative [Line Items]
Derivative, Maturity date	2025-07
Derivative, Fixed rate	1.99%
Notional Amount	$ 25,000	25,000
Fair Value	$ 697	(767)
Truist Financial Corporation Three
Derivative [Line Items]
Derivative, Maturity date	2025-12
Derivative, Fixed rate	2.30%
Notional Amount	$ 25,000	25,000
Fair Value	$ 517	(1,125)
Bank of Montreal Three
Derivative [Line Items]
Derivative, Maturity date	2026-01
Derivative, Fixed rate	1.92%
Notional Amount	$ 25,000	25,000
Fair Value	$ 833	(760)
Bank of Montreal Four
Derivative [Line Items]
Derivative, Maturity date	2026-01
Derivative, Fixed rate	2.05%
Notional Amount	$ 40,000	40,000
Fair Value	$ 1,162	(1,415)
Capital One, National Association Two
Derivative [Line Items]
Derivative, Maturity date	2026-01
Derivative, Fixed rate	2.08%
Notional Amount	$ 35,000	35,000
Fair Value	$ 980	(1,274)
Truist Financial Corporation Four
Derivative [Line Items]
Derivative, Maturity date	2026-01
Derivative, Fixed rate	1.93%
Notional Amount	$ 25,000	25,000
Fair Value	$ 826	(768)
Capital One, National Association Three
Derivative [Line Items]
Derivative, Maturity date	2026-04
Derivative, Fixed rate	2.68%
Notional Amount	$ 15,000	15,000
Fair Value	$ 121	(941)
Capital One, National Association Four
Derivative [Line Items]
Derivative, Maturity date	2026-07
Derivative, Fixed rate	1.32%
Notional Amount	$ 35,000	35,000
Fair Value	$ 2,076	(205)
Bank of Montreal Five
Derivative [Line Items]
Derivative, Maturity date	2026-12
Derivative, Fixed rate	2.33%
Notional Amount	$ 10,000	10,000
Fair Value	$ 233	(538)
Bank of Montreal Six
Derivative [Line Items]
Derivative, Maturity date	2026-12
Derivative, Fixed rate	1.99%
Notional Amount	$ 25,000	25,000
Fair Value	$ 941	(936)
Toronto-Dominion Bank
Derivative [Line Items]
Derivative, Maturity date	2027-03
Derivative, Fixed rate	2.46%
Notional Amount	$ 15,531	0
Fair Value	$ 660
Wells Fargo Bank Two
Derivative [Line Items]
Derivative, Maturity date	2027-04
Derivative, Fixed rate	2.72%
Notional Amount	$ 25,000	25,000
Fair Value	$ 170	(1,887)
Bank of Montreal Seven
Derivative [Line Items]
Derivative, Maturity date	2027-12
Derivative, Fixed rate	2.37%
Notional Amount	$ 25,000	25,000
Fair Value	$ 637	(1,570)
Capital One, National Association Five
Derivative [Line Items]
Derivative, Maturity date	2027-12
Derivative, Fixed rate	2.37%
Notional Amount	$ 25,000	25,000
Fair Value	$ 616	(1,575)
Wells Fargo Bank Three
Derivative [Line Items]
Derivative, Maturity date	2028-01
Derivative, Fixed rate	2.37%
Notional Amount	$ 75,000	75,000
Fair Value	$ 1,864	(4,741)
Bank of Montreal Eight
Derivative [Line Items]
Derivative, Maturity date	2029-05
Derivative, Fixed rate			2.09%
Notional Amount	$ 25,000	25,000
Fair Value	$ 1,195	(1,316)
Regions Bank One
Derivative [Line Items]
Derivative, Maturity date	2029-05
Derivative, Fixed rate	2.11%
Notional Amount	$ 25,000	25,000
Fair Value	$ 1,143	(1,356)
Regions Bank Two
Derivative [Line Items]
Derivative, Maturity date	2029-06
Derivative, Fixed rate	2.03%
Notional Amount	$ 25,000	25,000
Fair Value	$ 1,265	(1,222)
U S Bank National Association One
Derivative [Line Items]
Derivative, Maturity date	2029-06
Derivative, Fixed rate	2.03%
Notional Amount	$ 25,000	25,000
Fair Value	$ 1,284	(1,220)
U S Bank National Association Two
Derivative [Line Items]
Derivative, Maturity date	2029-08
Derivative, Fixed rate	1.35%
Notional Amount	$ 25,000	25,000
Fair Value	$ 2,407	(9)
Regions Bank Three
Derivative [Line Items]
Derivative, Maturity date	2032-03
Derivative, Fixed rate	2.69%
Notional Amount	$ 15,531	0
Fair Value	$ 1,103
U S Bank National Association Three
Derivative [Line Items]
Derivative, Maturity date	2032-03
Derivative, Fixed rate	2.70%
Notional Amount	$ 15,531	0
Fair Value	$ 1,126
Bank of Montreal Nine
Derivative [Line Items]
Derivative, Maturity date	2034-03
Derivative, Fixed rate	2.81%
Notional Amount	$ 31,064	0
Fair Value	$ 2,435

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Interest Rate Swaps - Total Amounts Recognized From Converting Variable Rates to Fixed Rates and Location of Gain (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Derivative [Line Items]
Total Interest Expense Presented in the Condensed Consolidated Statements of Income and Comprehensive Income (Loss)	$ 17,888	$ 15,430	$ 34,784	$ 31,538
Interest Rate Swap
Derivative [Line Items]
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)	$ 18,772	$ (2,911)	$ 53,733	$ 25,769
Reclassification from Accumulated Other Comprehensive Income (Loss), Location	Interest expense	Interest expense	Interest expense	Interest expense
Reclassification from Accumulated Other Comprehensive Income (Loss), Amount of Loss	$ 3,122	$ 4,039	$ 6,987	$ 8,055
Total Interest Expense Presented in the Condensed Consolidated Statements of Income and Comprehensive Income (Loss)	$ 17,888	$ 15,430	$ 34,784	$ 31,538

XML

Interest Rate Swaps - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Derivative [Line Items]
Interest rate swaps expected to be reclassified - (loss)			$ 4,800
Weighted Average Fixed Rate	3.33%		3.33%
Interest Expense	$ 17,888	$ 15,430	$ 34,784	$ 31,538
Interest Rate Swap
Derivative [Line Items]
Weighted Average Fixed Rate	2.11%		2.11%
Interest Expense	$ 17,888	$ 15,430	$ 34,784	$ 31,538

XML

Non-Controlling Interests - Schedule of OP Units Exchanged for Shares of Common Stock (Detail) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Noncontrolling Interest [Line Items]
Value of units exchanged					$ 18,500
Common Stock
Noncontrolling Interest [Line Items]
OP Units exchanged for shares of common stock	0	1,127		0	1,165
Additional Paid-in Capital
Noncontrolling Interest [Line Items]
Value of units exchanged	$ 0	$ 17,859	$ 606	$ 0	$ 18,465

XML

Non-Controlling Interests - Additional Information (Details)	Jun. 16, 2021 shares
Noncontrolling Interest [Abstract]
Number of OP Units Issued During Period	247,899

XML

Credit Risk Concentrations - Additional Information (Detail) - Customer	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Concentration Risk [Line Items]
Number of tenants or common franchises	0	0	0	0

XML

Equity - Additional Information (Detail) - USD ($)			3 Months Ended				6 Months Ended		10 Months Ended
	Jun. 28, 2021	Jun. 22, 2021	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022
Equity [Line Items]
Net proceeds from issuance of common stock							$ 202,628,000	$ 253,647,000
Follow-on equity offering
Equity [Line Items]
Issuance of shares of common stock, shares	11,500,000
Offering price	$ 23.00
Underwriting discounts and commissions	$ 10,600,000
Other equity offering expenses	400,000
Net proceeds from issuance of common stock	253,500,000
VWAP Earnout [Member]
Equity [Line Items]
Issuance of shares of common stock, shares		145,195	0				0
ATM
Equity [Line Items]
Issuance of shares of common stock, shares					0			0
Gross Sale Price									$ 234,000,000.0
Revolving Credit Facilities | Follow-on equity offering
Equity [Line Items]
Repayments of lines of credit	$ 160,600
Common Stock
Equity [Line Items]
Issuance of shares of common stock, shares			3,281,000	6,427,000	11,659,000	211,000
Common Stock | ATM
Equity [Line Items]
Common stock with an aggregate sales price			$ 166,000,000.0				$ 166,000,000.0		$ 166,000,000.0
Common Stock | Maximum
Equity [Line Items]
Gross Sale Price							$ 400,000,000.0

XML

Equity - Summary of Common Shares under Company's ATM Program (Details) - ATM - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Equity [Line Items]
Number of common shares issued	3,236	9,509
Weighted average sale price per share	$ 21.42	$ 21.69
Net proceeds	$ 68,321	$ 202,647
Gross proceeds	$ 69,313	$ 205,857

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Stock-Based Compensation - Additional Information (Detail) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares of restricted stock	33,000	2,000	175,000	201,000
Weighted average grant date fair value per share, Granted	$ 20.23	$ 19.76	$ 21.39	$ 18.67
Unvested shares	392,000	378,000	392,000	378,000	367,000	372,000	416,000	341,000
Performance-based Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares of restricted stock	0	0	122,000	132,000
Weighted average grant date fair value per share, Granted	$ 0	$ 0	$ 27.93	$ 24.40
Unvested shares	231,000	110,000	231,000	110,000	232,000	110,000	110,000	0
2020 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average grant date fair value per share, Granted	$ 20.23	$ 19.76	$ 21.39	$ 18.66
2020 Equity Incentive Plan | Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares of restricted stock	32,868	1,665	174,913	201,095
2020 Equity Incentive Plan | Performance-based Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares of restricted stock			121,883	132,189
Non-vested share awards percentage			50.00%
Vesting percentage payout schedule can produce			100.00%
Performance period			3 years
Percentage as rTSR of peer group			55.00%
2020 Equity Incentive Plan | Performance-based Restricted Stock Units | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage payout schedule can produce			0.00%
2020 Equity Incentive Plan | Performance-based Restricted Stock Units | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage payout schedule can produce			200.00%
2020 Equity Incentive Plan | Tranche One | Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period			1 year
2020 Equity Incentive Plan | Tranche Two | Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period			3 years
2020 Equity Incentive Plan | Tranche Three | Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period			4 years

XML

Stock-Based Compensation - Summary of RSAs (Detail) - Restricted Stock Awards - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
		Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation cost	[1]	$ 877	$ 728	$ 1,487	$ 2,423
Dividends declared on unvested RSAs		106	97	203	201
Grant date fair value of shares vested during the period		0	$ 774	3,209	$ 3,296
Unamortized value of RSAs		$ 6,794		$ 6,794		$ 4,715
Weighted average amortization period (in years)				2 years 6 months		2 years 4 months 24 days

[1] Includes $0.1 million compensation cost recognized from RSAs granted to non-employee directors for the three and six months ended June 30, 2022.

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Stock-Based Compensation - Summary of RSAs (Parenthetical) (Details) - Restricted Stock Awards - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation cost	[1]	$ 877	$ 728	$ 1,487	$ 2,423
Non-Employee Directors [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation cost		$ 100		$ 100

[1] Includes $0.1 million compensation cost recognized from RSAs granted to non-employee directors for the three and six months ended June 30, 2022.

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Stock-Based Compensation - Summary of RSA Activity (Detail) - Restricted Stock Awards - $ / shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Unvested at beginning of period	367	416	372	341
Number of Shares, Granted	33	2	175	201
Number of Shares, Vested	0	(40)	(146)	(164)
Number of Shares, Forfeited	(8)	0	(9)	0
Number of Shares, Unvested at end of period	392	378	392	378
Weighted Average Grant Date Fair Value per Share, Unvested at beginning of period	$ 20.33	$ 19.62	$ 19.62	$ 20.50
Weighted average grant date fair value per share, Granted	20.23	19.76	21.39	18.67
Weighted Average Grant Date Fair Value per Share, Vested	0	19.81	19.80	20.15
Weighted Average Grant Date Fair Value per Share, Forfeited	19.95	0	20.06	0
Weighted Average Grant Date Fair Value per Share, Unvested at end of period	$ 20.33	$ 19.60	$ 20.33	$ 19.60

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Stock-Based Compensation - Summary of PRSUs (Detail) - Performance-based Restricted Stock Units - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation cost	$ 504	$ 223	$ 823	$ 297
Unamortized value of PRSUs	$ 4,490		$ 4,490		$ 1,931
Weighted average amortization period (in years)			2 years 3 months 18 days		2 years 2 months 12 days

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Stock-Based Compensation - Summary of PRSU Activity (Detail) - Performance-based Restricted Stock Units - $ / shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Unvested at beginning of period	232	110	110	0
Number of Shares, Granted	0	0	122	132
Number of Shares, Vested	0	0	0	0
Number of Shares, Forfeited	(1)	0	(1)	(22)
Number of Shares, Unvested at end of period	231	110	231	110
Weighted Average Grant Date Fair Value per Share, Unvested at beginning of period	$ 26.25	$ 24.40	$ 24.40	$ 0
Weighted average grant date fair value per share, Granted	0	0	27.93	24.40
Weighted Average Grant Date Fair Value per Share, Vested	0	0	0	0
Weighted Average Grant Date Fair Value per Share, Forfeited	27.93	0	27.93	24.40
Weighted Average Grant Date Fair Value per Share, Unvested at end of period	$ 26.25	$ 24.40	$ 26.25	$ 24.40

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Earnings per Share - Summary of Components used in Calculation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Basic earnings:
Net earnings attributable to Broadstone Net Lease, Inc. common shareholders		$ 33,516	$ 21,214	$ 60,274	$ 43,437
Less earnings allocated to unvested restricted shares		(105)	(97)	(202)	(201)
Net earnings used to compute basic earnings per common share		33,411	21,117	60,072	43,236
Diluted earnings:
Net earnings used to compute basic earnings per share		33,411	21,117	60,072	43,236
Net earnings attributable to non-controlling interests		2,036	1,606	3,719	3,343
Net earnings used to compute diluted earnings per common share		$ 35,447	$ 22,723	$ 63,791	$ 46,579
Weighted Average Number of Common Shares Outstanding		169,933	146,506	167,072	146,089
Less weighted average unvested restricted shares	[1]	(378)	(387)	(374)	(361)
Weighted average number of common shares outstanding used in basic earnings per common share		169,555	146,119	166,698	145,728
Effect of restricted stock units	[2]	378	219	325	147
Effects of convertible membership units	[3]	10,323	11,092	10,323	11,240
Weighted average number of common shares outstanding used in diluted earnings per common share		180,256	157,430	177,346	157,115
Basic earnings per share		$ 0.20	$ 0.14	$ 0.36	$ 0.30
Diluted earnings per share		$ 0.20	$ 0.14	$ 0.36	$ 0.30

[1] Represents the weighted average effects of 391,187 and 378,516 unvested restricted shares of common stock as of June 30, 2022 and 2021, respectively, which will be excluded from the computation of earnings per share until they vest. The shares of restricted common stock were not included in the calculation of diluted earnings per share, as the effect of doing so would have been anti-dilutive.

[2] Represents the weighted average effects of shares of common stock to be issued as though the end of the period were the end of the performance period (see Note 15).

[3] Represents the weighted average effects of 10,323,206 and 10,481,872 OP Units outstanding at June 30, 2022 and 2021, respectively. OP Units are included in the diluted earnings per share calculation. However, because such OP Units would also require that the share of the net income attributable to such OP units also be added back to net income, there is no effect to EPS.

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Earnings per Share - Summary of Components used in Calculation of Basic and Diluted Earnings per Share (Parenthetical) (Detail) - shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Unvested restricted shares of common stock	391,187	378,516
Weighted average effects of OP Units outstanding	10,323,206	10,481,872

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Supplemental Cash Flow Disclosures - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Supplemental Cash Flow Elements [Line Items]
Cash paid for interest				$ 32,100	$ 30,000
Cash paid for income taxes				1,000	700
Dividends payable	$ 49,500	$ 43,200		$ 49,500	$ 43,200
Issuance of shares common stock upon conversion of OP units					1,164,461
Conversion of OP Units to shares of common stock					$ 18,500
Number Of Operating Units Exchanged	0	1,127,000	38,000	(0)	1,164,461
Additional Paid-in Capital
Supplemental Cash Flow Elements [Line Items]
Conversion of OP Units to shares of common stock	$ 0	$ 17,859	$ 606	$ 0	$ 18,465
Common Stock
Supplemental Cash Flow Elements [Line Items]
Issuance of shares common stock upon conversion of OP units		1,127,000	38,000
Non-controlling Interests
Supplemental Cash Flow Elements [Line Items]
Conversion of OP Units to shares of common stock		$ (17,859)	$ (606)
OP | Additional Paid-in Capital
Supplemental Cash Flow Elements [Line Items]
Adjusted carrying value of non-controlling interests				$ 2,900	$ 7,900

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Commitments and Contingencies - Additional Information (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Loss Contingencies [Line Items]
Potential liability due to taxable sales of applicable properties	$ 22.3
Tenant building Expansion	$ 17.4
Minimum | Office Lease
Loss Contingencies [Line Items]
Non-cancellable operating leases, expiration year	2022
Minimum | Ground Lease
Loss Contingencies [Line Items]
Non-cancellable operating leases term	2034
Maximum | Office Lease
Loss Contingencies [Line Items]
Non-cancellable operating leases, expiration year	2023
Maximum | Ground Lease
Loss Contingencies [Line Items]
Non-cancellable operating leases term	2069

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Subsequent Events - Additional Information (Detail) $ / shares in Units, $ in Thousands						1 Months Ended	6 Months Ended
		Aug. 01, 2022 USD ($) Loans	Jul. 28, 2022 $ / shares	Jul. 15, 2022 USD ($)	Jan. 28, 2022	Aug. 03, 2022 USD ($) $ / shares shares	Jun. 30, 2022 USD ($) shares	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) shares
Subsequent Event [Line Items]
Unsecured revolving credit facility							$ 320,657		$ 102,000
Borrowings on unsecured revolving credit facility							$ 380,783	$ 175,600
Common Stock, Shares, Issued | shares							172,023,000		162,383,000
Net proceeds from issuance of common stock							$ 202,628	$ 253,647
Minimum | Unsecured Revolving Credit Facility
Subsequent Event [Line Items]
Basis spread on variable rate					0.725%
Borrowings on unsecured revolving credit facility							$ 94,000
Maximum | Unsecured Revolving Credit Facility
Subsequent Event [Line Items]
Basis spread on variable rate					1.40%
Unsecured Debt | Unsecured Revolving Credit Facility
Subsequent Event [Line Items]
Basis spread on variable rate	[1],[2],[3]						0.85%
Subsequent Event
Subsequent Event [Line Items]
Distribution paid				$ 49,200
Quarterly distribution per share | $ / shares			$ 0.270
Quarterly distribution declared date			Jul. 28, 2022
Quarterly distribution payable date			Oct. 14, 2022
Quarterly distribution date of record			Sep. 30, 2022
Acquisitions of rental property and associated intangible assets and liabilities						$ 80,200
Common Stock, Shares, Issued | shares						962,200
Weighted average sale price per share | $ / shares						$ 21.44
Commissions and other offering costs						$ 300
Net proceeds from issuance of common stock						20,300
Subsequent Event | Unsecured Revolving Credit Facility
Subsequent Event [Line Items]
Repayments of unsecured debt						$ 318,000
Subsequent Event | 2027 Unsecured Term Loan [Member]
Subsequent Event [Line Items]
Unsecured debt		$ 200,000
Unsecured debt, term (years)		5 years
Unsecured debt, maturity year		2027
Basis spread on variable rate		0.95%
Subsequent Event | 2027 Unsecured Term Loan [Member] | Secured Overnight Financing Rate [Member] | Minimum
Subsequent Event [Line Items]
Basis spread on variable rate		0.80%
Subsequent Event | 2027 Unsecured Term Loan [Member] | Secured Overnight Financing Rate [Member] | Maximum
Subsequent Event [Line Items]
Basis spread on variable rate		1.60%
Subsequent Event | 2029 Unsecured Term Loan [Member]
Subsequent Event [Line Items]
Unsecured debt		$ 300,000
Unsecured debt, term (years)		7 years
Unsecured debt, maturity year		2029
Basis spread on variable rate		1.25%
Subsequent Event | 2029 Unsecured Term Loan [Member] | Secured Overnight Financing Rate [Member] | Minimum
Subsequent Event [Line Items]
Basis spread on variable rate		1.15%
Subsequent Event | 2029 Unsecured Term Loan [Member] | Secured Overnight Financing Rate [Member] | Maximum
Subsequent Event [Line Items]
Basis spread on variable rate		2.20%
Subsequent Event | Unsecured Debt
Subsequent Event [Line Items]
Number of term loan | Loans		2
Unsecured debt, maturity year		2024
Repayments of unsecured debt		$ 190,000

[1] At June 30, 2022 and December 31, 2021, one-month LIBOR was 1.79% and 0.10%, respectively.

[2] At June 30, 2022, a balance of $243.0 million was subject to the one-month Secured Overnight Financing Rate of 1.69%. The remaining balance includes $100 million CAD borrowings remeasured to $77.7 million USD, which was subject to the one-month Canadian Dollar Offered Rate of 2.23%.

[3] At December 31, 2021, interest rate was one-month LIBOR plus 1.00%