Exhibit 99.2

 

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

Table of Contents

Section	Page
About the Data	3
Company Overview	4
Quarterly Financial Summary	5
Balance Sheet	6
Income Statement Summary	7
Funds From Operations (FFO), Core Funds From Operations (Core FFO), and Adjusted Funds From Operations (AFFO)	8
EBITDA, EBITDAre, and Other Non-GAAP Operating Measures	9
Lease Revenues Detail	10
Capital Structure	11
Equity Rollforward	12
Debt Outstanding	13
Interest Rate Swaps	14
Net Debt Metrics	15
Covenants	16
Debt & Swap Maturities	17
Investment Activity	18
Developments	19
Dispositions	20
Portfolio at a Glance: Key Metrics	21
Diversification: Tenants and Brands	22-25
Diversification: Property Type	26-27
Key Statistics by Property Type	28
Diversification: Tenant Industry	29
Diversification: Geography	30
Lease Expirations	31
Portfolio Occupancy	32
Definitions and Explanations	33-34

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 2

About the Data

This data and other information described herein are as of and for the three months ended December 31, 2023 unless otherwise indicated. Future performance may not be consistent with past performance and is subject to change and inherent risks and uncertainties. This information should be read in conjunction with Broadstone Net Lease, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2023, including the financial statements and the management’s discussion and analysis of financial condition and results of operations sections.

Forward Looking Statements

Information set forth herein contains forward-looking statements, which reflect our current views regarding our business, financial performance, growth prospects and strategies, market opportunities, and market trends. Forward-looking statements include all statements that are not historical facts. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “would be,” “seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. All of the forward-looking statements herein are subject to various risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results, performance, and achievements could differ materially from those expressed in or by the forward-looking statements and may be affected by a variety of risks and other factors. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from such forward-looking statements. These factors include, but are not limited to, risks and uncertainties related to general economic conditions, including but not limited to increases in the rate of inflation and/or interest rates, local real estate conditions, tenant financial health, and property acquisitions and the timing of these investments and acquisitions. These and other risks, assumptions, and uncertainties are described in our filings with the SEC, which are available on the SEC’s website at www.sec.gov. This document contains references to copyrights, trademarks, trade names, and service marks that belong to other companies. Broadstone Net Lease is not affiliated or associated with, and is not endorsed by and does not endorse, such companies or their products or services.

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

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 3

Company Overview

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

Executive Team John D. Moragne Chief Executive Officer and Member, Board of Directors Ryan M. Albano President and Chief Operating Officer Kevin M. Fennell Executive Vice President and Chief Financial Officer John D. Callan, Jr. Senior Vice President, General Counsel, and Secretary Michael B. Caruso Senior Vice President, Underwriting & Strategy Timothy D. Dieffenbacher Senior Vice President, Chief Accounting Officer, and Treasurer Jennie L. O’Brien Senior Vice President, Accounting, and Controller Roderick A. Pickney Senior Vice President, Acquisitions Molly Kelly Wiegel Senior Vice President, Human Resources & Administration Andrea T. Wright Senior Vice President, Property Management Board of Directors Laurie A. Hawkes Chairman of the Board John D. Moragne Chief Executive Officer Denise Brooks-Williams Michael A. Coke Jessica Duran Laura Felice David M. Jacobstein Shekar Narasimhan James H. Watters

Company Contact Information

Brent Maedl
Director, Corporate Strategy & Investor Relations

brent.maedl@broadstone.com

585-382-8507

Transfer Agent

Computershare Trust Company, N.A.

150 Royall Street

Canton, Massachusetts 02021

800-736-3001

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 4

Quarterly Financial Summary

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

	Q4 2023			Q3 2023			Q2 2023			Q1 2023			Q4 2022
Financial Summary
Investment in rental property	$	4,915,911		$	4,939,598		$	4,981,430		$	5,002,330		$	5,035,846
Less accumulated depreciation		(626,597	)		(601,895	)		(578,616	)		(558,410	)		(533,965	)
Property under development		94,964			49,819			37,449			—			—
Investment in rental property, net		4,384,278			4,387,522			4,440,263			4,443,920			4,501,881
Cash and cash equivalents		19,494			35,061			20,763			15,412			21,789
Restricted cash		1,138			15,436			15,502			3,898			38,251
Total assets		5,268,735			5,335,043			5,368,150			5,335,868			5,457,609
Unsecured revolving credit facility		90,434			74,060			122,912			108,330			197,322
Mortgages, net		79,068			79,613			80,141			85,853			86,602
Unsecured term loans, net		895,947			895,633			895,319			895,006			894,692
Senior unsecured notes, net		845,309			845,121			844,932			844,744			844,555
Total liabilities		2,074,394			2,059,570			2,106,553			2,103,551			2,195,104
Total Broadstone Net Lease, Inc.    equity		3,049,241			3,120,776			3,107,536			3,079,207			3,092,918
Total equity (book value)		3,194,341			3,275,473			3,261,597			3,232,317			3,262,505
Revenues		105,000			109,543			109,353			118,992			112,135
General and administrative -    other		7,982			8,603			7,944			8,924			7,814
Stock based compensation		1,401			1,540			1,539			1,492			1,503
General and administrative		9,383			10,143			9,483			10,416			9,317
Total operating expenses		84,457			54,383			53,502			59,559			61,320
Interest expense		18,972			19,665			20,277			21,139			23,773
Net income		6,797			52,145			62,996			41,374			36,773
Net earnings per common share,    diluted	$	0.03		$	0.26		$	0.32		$	0.21		$	0.20
FFO		69,443			75,478			72,524			81,177			71,718
FFO per share, diluted	$	0.35		$	0.39		$	0.37		$	0.41		$	0.39
Core FFO		75,275			74,754			74,381			74,473			70,527
Core FFO per share, diluted	$	0.38		$	0.38		$	0.38		$	0.38		$	0.38
AFFO		71,278			69,958			69,004			67,485			65,584
AFFO per share, diluted	$	0.36		$	0.36		$	0.35		$	0.34		$	0.36
Net cash provided by operating activities		60,582			73,888			62,228			74,376			60,440
Capital expenditures and improvements		568			1,106			1,011			758			31,374
Capital expenditures and improvements -     revenue generating		16,229			4,755			7,000			14,825			—
Net cash (used in) provided by investing activities		(49,536	)		42,528			1,713			29,633			(274,485	)
Net cash (used in) provided by financing activities		(40,911	)		(102,184	)		(46,986	)		(144,739	)		191,724
Distributions declared		56,433			54,274			55,419			54,887			54,372
Distributions declared per diluted    share	$	0.285		$	0.280		$	0.280		$	0.275		$	0.275

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Balance Sheet

(unaudited, in thousands)

	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
Assets
Accounted for using the operating method:
Land	$	748,529		$	752,708		$	754,402		$	760,142		$	768,667
Land improvements		328,746			330,214			332,757			337,296			340,385
Buildings and improvements		3,803,156			3,819,745			3,857,236			3,866,952			3,888,756
Equipment		8,265			9,608			9,608			10,422			10,422
Total accounted for using the    operating method		4,888,696			4,912,275			4,954,003			4,974,812			5,008,230
Less accumulated depreciation		(626,597	)		(601,895	)		(578,616	)		(558,410	)		(533,965	)
Accounted for using the    operating method, net		4,262,099			4,310,380			4,375,387			4,416,402			4,474,265
Accounted for using the direct    financing method		26,643			26,751			26,855			26,947			27,045
Accounted for using the sales-type    method		572			572			572			571			571
Property under development		94,964			49,819			37,449			—			—
Investment in rental property, net		4,384,278			4,387,522			4,440,263			4,443,920			4,501,881
Cash and cash equivalents		19,494			35,061			20,763			15,412			21,789
Accrued rental income		152,724			152,268			148,697			142,031			135,666
Tenant and other receivables, net		1,487			1,372			1,895			2,004			1,349
Prepaid expenses and other assets		36,661			42,309			42,322			29,764			64,180
Interest rate swap, assets		46,096			79,086			65,143			45,490			63,390
Goodwill		339,769			339,769			339,769			339,769			339,769
Intangible lease assets, net		288,226			297,656			309,298			317,478			329,585
Total assets	$	5,268,735		$	5,335,043		$	5,368,150		$	5,335,868		$	5,457,609
Liabilities and equity
Unsecured revolving credit facility	$	90,434		$	74,060		$	122,912		$	108,330		$	197,322
Mortgages, net		79,068			79,613			80,141			85,853			86,602
Unsecured term loans, net		895,947			895,633			895,319			895,006			894,692
Senior unsecured notes, net		845,309			845,121			844,932			844,744			844,555
Accounts payable and other liabilities		47,534			44,886			44,147			46,090			47,547
Dividends payable		56,869			55,770			55,640			54,515			54,460
Accrued interest payable		5,702			9,186			5,889			9,654			7,071
Intangible lease liabilities, net		53,531			55,301			57,573			59,359			62,855
Total liabilities		2,074,394			2,059,570			2,106,553			2,103,551			2,195,104
Equity
Broadstone Net Lease, Inc.    equity:
Preferred stock, $0.001 par value		—			—			—			—			—
Common stock, $0.00025 par value		47			47			47			47			47
Additional paid-in capital		3,440,639			3,430,725			3,430,692			3,434,534			3,419,395
Cumulative distributions in excess of    retained earnings		(440,731	)		(393,571	)		(391,631	)		(398,890	)		(386,049	)
Accumulated other comprehensive    Income		49,286			83,575			68,428			43,516			59,525
Total Broadstone Net Lease, Inc.    equity		3,049,241			3,120,776			3,107,536			3,079,207			3,092,918
Non-controlling interests		145,100			154,697			154,061			153,110			169,587
Total equity		3,194,341			3,275,473			3,261,597			3,232,317			3,262,505
Total liabilities and equity	$	5,268,735		$	5,335,043		$	5,368,150		$	5,335,868		$	5,457,609

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 6

Income Statement Summary

(unaudited, in thousands, except per share data)

	Three Months Ended
	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
Revenues
Lease revenues, net	$	105,000		$	109,543		$	109,353		$	118,992		$	112,135
Operating expenses
Depreciation and amortization		39,278			38,533			39,031			41,784			45,606
Property and operating    expense		5,995			5,707			4,988			5,886			6,397
General and administrative		9,383			10,143			9,483			10,416			9,317
Provision for impairment of    investment in rental    properties		29,801			—			—			1,473			—
Total operating expenses		84,457			54,383			53,502			59,559			61,320
Other income (expenses)
Interest income		141			127			82			162			40
Interest expense		(18,972	)		(19,665	)		(20,277	)		(21,139	)		(23,773	)
Gain on sale of real estate		6,270			15,163			29,462			3,415			10,625
Income taxes		268			(104	)		(448	)		(479	)		(106	)
Other (expenses) income		(1,453	)		1,464			(1,674	)		(18	)		(828	)
Net income		6,797			52,145			62,996			41,374			36,773
Net income attributable to    non-controlling interests		(319	)		(2,463	)		(2,982	)		(2,070	)		(2,041	)
Net income attributable to    Broadstone Net Lease, Inc.	$	6,478		$	49,682		$	60,014		$	39,304		$	34,732
Weighted average number of common shares outstanding
Basic1		186,829			186,766			186,733			186,130			173,283
Diluted1		196,373			196,372			196,228			196,176			183,592
Net earnings per common share2
Basic	$	0.03		$	0.27		$	0.32		$	0.21		$	0.20
Diluted	$	0.03		$	0.26		$	0.32		$	0.21		$	0.20

1Excludes 493,524, 506,172, 504,161, 431,392, and 396,924, weighted average shares of unvested restricted common stock for the three months ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022.

2Excludes $0.1 million from the numerator for the three months ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, related to dividends declared on shares of unvested restricted common stock.

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

(unaudited, in thousands, except per share data)

	Three Months Ended
	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
Net income	$	6,797		$	52,145		$	62,996		$	41,374		$	36,773
Real property depreciation and    amortization		39,115			38,496			38,990			41,745			45,570
Gain on sale of real estate		(6,270	)		(15,163	)		(29,462	)		(3,415	)		(10,625	)
Provision for impairment of investment    in rental properties		29,801			—			—			1,473			—
FFO	$	69,443		$	75,478		$	72,524		$	81,177		$	71,718
Net write-offs of accrued rental income		4,161			—			—			297			—
Lease termination fees		—			—			—			(7,500	)		(1,678	)
Cost of debt extinguishment		—			—			3			—			77
Gain on insurance recoveries		—			—			—			—			(341	)
Severance and executive transition costs		218			740			183			481			—
Other (income) expenses1		1,453			(1,464	)		1,671			18			751
Core FFO	$	75,275		$	74,754		$	74,381		$	74,473		$	70,527
Straight-line rent adjustment		(5,404	)		(6,785	)		(7,276	)		(7,271	)		(6,826	)
Adjustment to provision for credit    losses		—			—			(10	)		—			—
Amortization of debt issuance costs		983			983			986			986			988
Amortization of net mortgage    premiums		—			—			(52	)		(26	)		(26	)
Loss on interest rate swaps and    other non-cash interest expense		319			522			521			522			522
Amortization of lease intangibles		(1,014	)		(1,056	)		(1,085	)		(2,691	)		(1,308	)
Stock-based compensation		1,401			1,540			1,539			1,492			1,503
Deferred taxes		(282	)		—			—			—			204
AFFO	$	71,278		$	69,958		$	69,004		$	67,485		$	65,584
Diluted weighted average shares    outstanding2		196,373			196,372			196,228			196,176			183,592
Net earnings per diluted share3	$	0.03		$	0.26		$	0.32		$	0.21		$	0.20
FFO per diluted share3		0.35			0.39			0.37			0.41			0.39
Core FFO per diluted share3		0.38			0.38			0.38			0.38			0.38
AFFO per diluted share3		0.36			0.36			0.35			0.34			0.36

1 Amount includes $1.5 million, ($1.4) million, $1.7 million, $18 thousand, and $0.8 million of unrealized and realized foreign exchange loss (gain) for the three months ended December 31,2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, respectively, primarily associated with our Canadian dollar denominated revolver borrowings.

2Excludes 493,524, 506,172, 504,161, 431,392, and 396,924, weighted average shares of unvested restricted common stock for the three months ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, respectively.

3Excludes $0.1 million from the numerator for the three months ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, related to dividends declared on shares of unvested restricted common stock.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 8

EBITDA, EBITDAre, and Other-Non GAAP Operating Measures

(unaudited, in thousands)

	Three Months Ended
	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
Net income	$	6,797		$	52,145		$	62,996		$	41,374		$	36,773
Depreciation and amortization		39,278			38,533			39,031			41,784			45,606
Interest expense		18,972			19,665			20,277			21,139			23,773
Income taxes		(268	)		104			448			479			105
EBITDA	$	64,779		$	110,447		$	122,752		$	104,776		$	106,257
Provision for impairment of investment in    rental properties		29,801			—			—			1,473			—
Gain on sale of real estate		(6,270	)		(15,163	)		(29,462	)		(3,415	)		(10,625	)
EBITDAre	$	88,310		$	95,284		$	93,290		$	102,834		$	95,632
Adjustment for current quarter investment activity 1		153			26			342			406			1,283
Adjustment for current quarter disposition activity 2		(156	)		(400	)		(444	)		(365	)		(440	)
Adjustment to exclude non-recurring and other expenses 3		128			740			183			(1,023	)		—
Adjustment to exclude gain on insurance recoveries		—			—			—			—			(341	)
Adjustment to exclude net write-offs of accrued rental income		4,161			—			—			297			—
Adjustment to exclude realized / unrealized foreign exchange (gain) loss		1,453			(1,433	)		1,681			18			796
Adjustment to exclude cost of debt extinguishments		—			—			3			—			77
Adjustment to exclude lease termination fees		—			—			—			(7,500	)		(1,678	)
Adjusted EBITDAre	$	94,049		$	94,217		$	95,055		$	94,667		$	95,329
General and administrative		9,254			9,404			9,300			9,935			9,318
Adjusted Net Operating Income ("NOI")	$	103,303		$	103,621		$	104,355		$	104,602		$	104,647
Straight-line rental revenue, net		(5,438	)		(6,744	)		(7,277	)		(7,425	)		(7,315	)
Other amortization and non-cash charges		(1,014	)		(1,087	)		(1,095	)		(1,668	)		(1,353	)
Adjusted Cash NOI	$	96,851		$	95,789		$	95,983		$	95,509		$	95,979
Annualized EBITDAre	$	353,240		$	381,136		$	373,160		$	411,336		$	382,528
Annualized Adjusted EBITDAre		376,196			376,868			380,220			378,668			381,315
Annualized Adjusted NOI		413,212			414,483			417,420			418,411			418,585
Annualized Adjusted Cash NOI		387,404			383,157			383,932			382,043			383,914

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

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

3 Amounts include $0.2 million, $0.7 million and $0.2 million of employee severance and executive transition costs during the three months ended December 31, 2023, September 30, 2023, and June 30, 2023, respectively, and ($0.1) million of forfeited stock-based compensation for the three months ended December 31, 2023. Amounts include a combined $0.5 million of executive transition costs and accelerated amortization of stock-based compensation, related to the departure of our previous chief executive officer and $(1.5) million of accelerated amortization of lease intangibles for the three months ended March 31, 2023.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 9

Lease Revenues Detail

(unaudited, in thousands)

	Three Months Ended
	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
Contractual rental amounts billed for    operating leases	$	97,182		$	96,333		$	96,456		$	98,102		$	96,208
Adjustment to recognize contractual    operating lease billings on a straight-    line basis		5,513			6,891			7,380			7,370			6,898
Net write-offs of accrued rental income		(4,161	)		—			—			(105	)		—
Variable rental amounts earned		971			513			452			341			721
Earned income from direct financing    leases		685			687			689			691			693
Interest income from sales-type    leases		15			14			15			14			15
Operating expenses billed to tenants		5,513			5,181			4,594			5,075			5,720
Other income from real estate    transactions		—			19			3			7,392			2,019
Adjustment to revenue recognized for    uncollectible rental amounts billed, net		(718	)		(95	)		(236	)		112			(139	)
Total Lease revenues, net	$	105,000		$	109,543		$	109,353		$	118,992		$	112,135

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 10

Capital Structure

(in thousands, except per share data)

 

EQUITY
Shares of Common Stock		187,614
OP Units		8,928
Common Stock & OP Units		196,542
Price Per Share / Unit at December 31, 2023	$	17.22
IMPLIED EQUITY MARKET CAPITALIZATION	$	3,384,453
% of Total Capitalization		63.8	%
DEBT
Unsecured Revolving Credit Facility - 2026	$	90,434
Unsecured Term Loans		900,000
Unsecured Term Loan - 2026		400,000
Unsecured Term Loan - 2027		200,000
Unsecured Term Loan - 2029		300,000
Senior Unsecured Notes		850,000
Senior Unsecured Notes - 2027		150,000
Senior Unsecured Notes - 2028		225,000
Senior Unsecured Notes - 2030		100,000
Senior Unsecured Public Notes - 2031		375,000
Mortgage Debt - Various		79,068
TOTAL DEBT	$	1,919,502
% of Total Capitalization		36.2	%
Floating Rate Debt %		0.8	%
Fixed Rate Debt %		99.2	%
Secured Debt %		4.1	%
Unsecured Debt %		95.9	%
Total Capitalization	$	5,303,955
Less: Cash and Cash Equivalents		(19,494	)
Enterprise Value	$	5,284,461

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 11

Equity Rollforward

(in thousands)

	Shares of Common Stock			OP Units			Total Diluted Shares
Balance, January 1, 2023		186,114			10,205			196,319
Grants of restricted stock awards - employees		259			—			259
Retirement of common shares under equity incentive plan		(66	)		—			(66	)
OP unit conversion		896			(896	)		—
Balance, March 31, 2023		187,203			9,309			196,512
Grants of restricted stock awards - board of directors		50			—			50
Grants of restricted stock awards - employees		1			—			1
Forfeiture of restricted stock awards		(6	)		—			(6	)
OP unit conversion		25			(25	)		—
Balance, June 30, 2023		187,273			9,284			196,557
Forfeiture of restricted stock awards		(2	)		—			(2	)
OP unit conversion		1			(1	)		—
Balance, September 30, 2023		187,272			9,283			196,555
Grants of restricted stock awards - employees		2			—			2
Forfeiture of restricted stock awards		(15	)		—			(15	)
OP unit conversion		355			(355	)		—
Balance, December 31, 2023		187,614			8,928			196,542

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 12

Debt Outstanding

(in thousands)

	Outstanding Balance
	December 31,			December 31,
	2023			2022			Interest Rate	Maturity Date
Revolving Credit Facility	$	90,434		$	197,322		Applicable reference rate + 0.85%1	Mar. 20264
Unsecured term loans:
2026 Unsecured Term Loan		400,000			400,000		one-month adjusted SOFR + 1.00%2, 3	Feb. 2026
2027 Unsecured Term Loan		200,000			200,000		one-month adjusted SOFR + 0.95%3	Aug. 2027
2029 Unsecured Term Loan		300,000			300,000		one-month adjusted SOFR + 1.25%3	Aug. 2029
Total unsecured term loans		900,000			900,000
Unamortized debt issuance costs, net		(4,053	)		(5,308	)
Total unsecured term loans, net		895,947			894,692
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		(4,691	)		(5,445	)
Total senior unsecured notes, net		845,309			844,555
Total unsecured debt, net	$	1,831,690		$	1,936,569

1 At December 31, 2023 and 2022, a balance of $15.0 million and $123.5 million, respectively was subject to the one-month SOFR. The remaining balances include $100 million CAD borrowings remeasured to $75.4 million and $73.8 million USD, respectively, which were subject to the one-month Canadian Dollar Offered Rate.

2 At December 31, 2023, one-month SOFR was 5.35%. At December 31, 2022, the applicable interest rate was 1-month LIBOR of 4.39%.

3 At December 31, 2023 and 2022, one-month SOFR was 5.35% and 4.36%, respectively.

4 Our 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.

	Origination	Maturity
	Date	Date	Interest	December 31,			December 31,
Lender	(Month/Year)	(Month/Year)	Rate	2023			2022
Wilmington Trust National Association	Apr-19	Feb-28	4.92%	$	44,207		$	45,516
Wilmington Trust National Association	Jun-18	Aug-25	4.36%		18,725			19,150
PNC Bank	Oct-16	Nov-26	3.62%		16,241			16,675
Aegon	Apr-12	Oct-23	6.38%		—			5,413
Total mortgages					79,173			86,754
Debt issuance costs, net					(105	)		(152	)
Mortgages, net				$	79,068		$	86,602

Year of Maturity	Revolving Credit Facility		Mortgages		Term Loans		Senior Notes		Total
2024	$	—	$	2,260	$	—	$	—	$	2,260
2025		—		20,195		—		—		20,195
2026		90,434		16,843		400,000		—		507,277
2027		—		1,596		200,000		150,000		351,596
2028		—		38,278		—		225,000		263,278
Thereafter		—		—		300,000		475,000		775,000
Total	$	90,434	$	79,172	$	900,000	$	850,000	$	1,919,606

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 13

Interest Rate Swaps

(in thousands, except interest rates)

						December 31, 2023
Counterparty	Maturity Date	Fixed Rate			Variable Rate Index (1)	Notional Amount			Fair Value
Wells Fargo Bank, N.A.	October 2024		2.72	%	daily compounded SOFR	$	15,000		$	255
Capital One, National Association	December 2024		1.58	%	daily compounded SOFR		15,000			445
Bank of Montreal	January 2025		1.91	%	daily compounded SOFR		25,000			713
Truist Financial Corporation	April 2025		2.20	%	daily compounded SOFR		25,000			734
Bank of Montreal	July 2025		2.32	%	daily compounded SOFR		25,000			768
Truist Financial Corporation	July 2025		1.99	%	daily compounded SOFR		25,000			888
Truist Financial Corporation	December 2025		2.30	%	daily compounded SOFR		25,000			887
Bank of Montreal	January 2026		1.92	%	daily compounded SOFR		25,000			1,071
Bank of Montreal	January 2026		2.05	%	daily compounded SOFR		40,000			1,615
Capital One, National Association	January 2026		2.08	%	daily compounded SOFR		35,000			1,389
Truist Financial Corporation	January 2026		1.93	%	daily compounded SOFR		25,000			1,067
Capital One, National Association	April 2026		2.68	%	daily compounded SOFR		15,000			439
Capital One, National Association	July 2026		1.32	%	daily compounded SOFR		35,000			2,186
Bank of Montreal	December 2026		2.33	%	daily compounded SOFR		10,000			423
Bank of Montreal	December 2026		1.99	%	daily compounded SOFR		25,000			1,299
Toronto-Dominion Bank	March 2027		2.46	%	one-month CDOR		15,087	(2)		572
Wells Fargo Bank, N.A.	April 2027		2.72	%	daily compounded SOFR		25,000			806
Bank of Montreal	December 2027		2.37	%	daily compounded SOFR		25,000			1,215
Capital One, National Association	December 2027		2.37	%	daily compounded SOFR		25,000			1,197
Wells Fargo Bank, N.A.	January 2028		2.37	%	daily compounded SOFR		75,000			3,632
Bank of Montreal	May 2029		2.09	%	daily compounded SOFR		25,000			1,835
Regions Bank	May 2029		2.11	%	daily compounded SOFR		25,000			1,801
Regions Bank	June 2029		2.03	%	daily compounded SOFR		25,000			1,900
U.S. Bank National Association	June 2029		2.03	%	daily compounded SOFR		25,000			1,908
Regions Bank	August 2029		2.58	%	one-month SOFR		100,000			4,392
Toronto-Dominion Bank	August 2029		2.58	%	one-month SOFR		45,000			2,021
U.S. Bank National Association	August 2029		2.65	%	one-month SOFR		15,000			618
U.S. Bank National Association	August 2029		2.58	%	one-month SOFR		100,000			4,427
U.S. Bank National Association	August 2029		1.35	%	daily compounded SOFR		25,000			2,828
Regions Bank	March 2032		2.69	%	one-month CDOR		15,087	(2)		677
U.S. Bank National Association	March 2032		2.70	%	one-month CDOR		15,087	(2)		678
Bank of Montreal	March 2034		2.81	%	one-month CDOR		30,174	(3)		1,410
						$	975,435		$	46,096

1 Prior to the cessation of LIBOR on July 1, 2023, the variable rate index for daily compounded SOFR-based swaps was one-month LIBOR.

2 The contractual notional amount is $20.0 million CAD.

3 The contractual notional amount is $40.0 million CAD.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 14

Net Debt Metrics

(in thousands)

	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
Debt
Unsecured revolving credit facility	$	90,434		$	74,060		$	122,912		$	108,330		$	197,322
Unsecured term loans, net		895,947			895,633			895,319			895,006			894,692
Senior unsecured notes, net		845,309			845,121			844,932			844,744			844,555
Mortgages, net		79,068			79,613			80,141			85,853			86,602
Debt issuance costs		8,848			9,360			9,872			10,390			10,905
Gross Debt		1,919,606			1,903,787			1,953,176			1,944,323			2,034,076
Cash and cash equivalents		(19,494	)		(35,061	)		(20,763	)		(15,412	)		(21,789	)
Restricted cash		(1,138	)		(15,436	)		(15,502	)		(3,898	)		(38,251	)
Net Debt	$	1,898,974		$	1,853,290		$	1,916,911		$	1,925,013		$	1,974,036
Net Debt to Annualized EBITDAre	5.4x			4.9x			5.1x			4.7x			5.2x
Net Debt to Annualized Adjusted    EBITDAre	5.0x			4.9x			5.0x			5.1x			5.2x

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 15

Covenants

The following is a summary of key financial covenants for the Company’s unsecured debt instruments. The covenants associated with the Revolving Credit Facility, Unsecured Term Loans with commercial banks, and the Series A-C Senior Unsecured Notes, are reported to the respective lenders via quarterly covenant reporting packages. The covenants associated with the 2031 Senior Unsecured Public Notes are not required to be reported externally to third parties, and are instead calculated in connection with borrowing activity and for financial reporting purposes only. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of December 31, 2023, the Company believes it is in compliance with the covenants.

Covenants	Required	Revolving Credit Facility and Unsecured Term Loans		Senior Unsecured Notes Series A, B, & C		2031 Senior Unsecured Public Notes
Leverage ratio	≤ 0.60 to 1.00		0.32		0.33	Not Applicable
Secured indebtedness ratio	≤ 0.40 to 1.00		0.01		0.01	Not Applicable
Unencumbered coverage ratio	≥ 1.75 to 1.00		3.61	Not Applicable		Not Applicable
Fixed charge coverage ratio	≥ 1.50 to 1.00		4.48		4.48	Not Applicable
Total unsecured indebtedness to    total unencumbered eligible    property value	≤ 0.60 to 1.00		0.34		0.35	Not Applicable
Dividends and other restricted    payments	Only applicable in case of default	Not Applicable		Not Applicable		Not Applicable
Aggregate debt ratio	≤ 0.60 to 1.00	Not Applicable		Not Applicable			0.35
Consolidated income available for    debt to annual debt service    charge	≥ 1.50 to 1.00	Not Applicable		Not Applicable			4.96
Total unencumbered assets to    total unsecured debt	≥ 1.50 to 1.00	Not Applicable		Not Applicable			2.87
Secured debt ratio	≤ 0.40 to 1.00	Not Applicable		Not Applicable			0.01

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 16

Debt Maturities

(dollars in millions)

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

 

1 Our 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.

Swap Maturities

(dollars in millions)

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 17

Investment Activity

(square feet and dollars in thousands)

The following tables summarize the Company’s investment activity during 2023.

	Q1 20231			Q2 2023				Q3 2023			Q4 2023			YTD 2023
Acquisitions:
Number of transactions		1			2				—			—			3
Number of properties		1			3				—			—			4
Square feet		10			144				—			—			154
Acquisition price	$	5,221		$	20,384				—			—		$	25,605
Industrial		—			20,384				—			—			20,384
Retail		5,221			—				—			—			5,221
Restaurant		—			—				—			—			—
Healthcare		—			—				—			—			—
Initial cash capitalization rate		6.8	%		7.4	%			—			—			7.3	%
GAAP capitalization rate		8.0	%		8.6	%			—			—			8.5	%
Weighted avg. lease term (years)		20.1			14.2				—			—			15.3
Weighted average annual rent increase		1.8	%		2.0	%			—			—			2.0	%
Revenue generating capital expenditures:
Number of existing properties		2			1				3			2			8
Investments2	$	14,825		$	7,000			$	4,755		$	16,229		$	42,809
Industrial		14,825			7,000				4,755			16,229			42,809
Initial cash capitalization rate		7.0	%		7.0	%			6.7	%		7.5	%		7.2	%
Weighted avg. lease term (years)		18.2			18.4				14.1			12.7			15.6
Weighted average annual rent increase		1.8	%		1.8	%			2.0	%		1.5	%		1.7	%
Development funding opportunities:
Number of new properties		—			1				1			1			3
Total development funding opportunities		—			37,549		-		11,746			47,878			97,173
Total investments	$	20,046		$	64,933			$	16,501		$	64,107		$	165,587
Total initial cash capitalization rate3		7.0	%		7.3	%			6.7	%		7.5	%		7.2	%
Total weighted average lease term (years)3		18.7			15.2				14.1			12.7			15.5
Total weighted average annual rent increase3		1.8	%		1.9	%			2.0	%		1.5	%		1.8	%

1During the first quarter, we entered into an agreement under the terms of an existing lease to substitute two properties with a tenant in exchange for one new property of equal value. Property substitutions are not included in the acquisition/disposition activity, but will impact the total number of properties reported as of December 31, 2023.

2 Total unfunded investment commitments at December 31, 2023, include up to $111.0 million in development fundings and $9.8 million in revenue generating capital expenditures.

3 Due to the nature of development funding opportunities not generating revenue during construction, these developments are excluded from the calculation of total capitalization rates, weighted average lease terms, and rent increases.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 18

Developments4

(square feet and dollars in thousands)

The following table summarizes the Company’s developments under construction as of December 31, 2023:

Property	Property Type	Projected Rentable Square Feet	Start Date4	Target Completion Date4	Initial Purchase Price4	Estimated Project Development Costs4	Estimated Total Project Investment4	QTD Q4 2023 Investment	Cumulative Investment at 12/31/23	Estimated Cash Capitalization Rate4	Estimated GAAP Capitalization Rate4
UNFI (Sarasota - FL)	Industrial	1,016	5/2023	10/2024	$17,300	$187,500	$204,800	$45,302	$93,858	7.2%	8.3%
Total		1,016			$17,300	$187,500	$204,800	$45,302	$93,858	7.2%	8.3%

The following table summarizes the Company’s completed developments as of December 31, 2023:

Property	Property Type	Rentable Square Feet		Completion Date4	Project Investment Costs Funded		Project Investment Costs to be Funded		Total Project Investment Costs		Cash Capitalization Rate4			GAAP Capitalization Rate4
7 Brew (Tulsa - OK)	Restaurant		1	10/2023	$	1,668	$	-	$	1,668		7.1	%		7.3	%
Taco Bell (Stilwell - OK)	Restaurant		2	12/2023		1,647		316		1,963		7.0	%		8.3	%
Total			3		$	3,315	$	316	$	3,631		7.1	%		7.8	%

4 Refer to definitions and explanations appearing at the end of this supplemental document.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 19

Dispositions1

(square feet and dollars in thousands)

The following table summarizes the Company’s property disposition activity during 2023.

Q1 20231
Property Type	Number of Properties		Square Feet		Acquisition Price		Disposition Price		Net Book Value
Office2		1		282	$	33,050		32,000	$	30,881
Industrial		1		74		16,240		18,550		15,015
Restaurant		1		5		1,186		1,324		1,099
Total Properties		3		361	$	50,476	$	51,874	$	46,995
Weighted average cash cap rate2										6.0	%
Q2 2023
Property Type	Number of Properties		Square Feet		Acquisition Price		Disposition Price		Net Book Value
Office		1		58	$	5,925		3,000	$	2,701
Industrial		2		601		43,000		61,950		32,961
Retail		1		4		3,454		4,440		2,719
Total Properties		4		663	$	52,379	$	69,390	$	38,381
Weighted average cash cap rate										5.6	%
Q3 2023
Property Type	Number of Properties		Square Feet		Acquisition Price		Disposition Price		Net Book Value
Industrial		2		298	$	51,054	$	62,300	$	45,770
Total Properties		2		298	$	51,054	$	62,300	$	45,770
Weighted average cash cap rate										6.2	%
Q4 2023
Property Type	Number of Properties		Square Feet		Acquisition Price		Disposition Price		Net Book Value
Industrial		1		8		1,185		760		626
Retail		3		16		6,957		11,993		5,978
Restaurant		1		11		3,063		3,755		2,899
Total Properties		5		35	$	11,205	$	16,508	$	9,503
Weighted average cash cap rate										6.7	%
2023 Dispositions
Property Type	Number of Properties		Square Feet		Acquisition Price		Disposition Price		Net Book Value
Office2		2		340	$	38,975	$	35,000	$	33,582
Industrial		6		981		111,479		143,560		94,372
Retail		4		20		10,411		16,433		8,697
Restaurant		2		16		4,249		5,079		3,998
Total Properties		14		1,357	$	165,114	$	200,072	$	140,649
Weighted average cash cap rate2										6.0	%

1 During the first quarter, we entered into an agreement under the terms of an existing lease to substitute two properties with a tenant in exchange for one new property of equal value. Property substitutions are not included in the acquisition/disposition activity, however will affect the total number of properties reported as of December 31, 2023.

2 Sale of office asset executed simultaneously with a $7.5 million lease buyout for total proceeds of $39.5 million, representing an all-in cash capitalization rate of 6.1%. Amounts have been excluded from the weighted average cash capitalization rate due to the nature of the separate transactions.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 20

Portfolio at a Glance: Key Metrics

	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
Properties1		796			800			801			801			804
U.S. States		44			44			44			44			44
Canadian Provinces		4			4			4			4			4
Total Annualized Base Rent	$392.2M			$390.0M			$391.0M			$389.5M			$389.1M
Total Rentable Sq. Footage	38.3M			38.2M			38.5M			39.1M			39.1M
Tenants		220			220			221			221			221
Brands		208			208			209			209			211
Industries		53			54			54			54			55
Occupancy (based on SF)		99.4	%		99.4	%		99.4	%		99.4	%		99.4	%
Rent Collection		99.2	%		99.9	%		99.9	%		100.0	%		99.9	%
Top 10 Tenant Concentration		19.6	%		19.3	%		19.4	%		19.2	%		19.0	%
Top 20 Tenant Concentration		32.3	%		32.0	%		32.1	%		31.4	%		31.4	%
Investment Grade (tenant/guarantor)		15.3	%		15.3	%		15.3	%		15.6	%		15.4	%
Financial Reporting Coverage2		93.8	%		93.7	%		94.2	%		94.3	%		94.3	%
Rent Coverage Ratio (Restaurants Only)	3.4x			3.4x			3.3x			3.2x			3.2x
Weighted Average Annual Rent Increases		2.0	%		2.0	%		2.0	%		2.0	%		2.0	%
Weighted Average Remaining Lease Term	10.5 years			10.5 years			10.7 years			10.8 years			10.9 years
Master Leases (based on ABR)
Total Portfolio		41.5	%		41.6	%		41.5	%		41.2	%		40.8	%
Multi-site tenants		69.0	%		69.3	%		69.3	%		69.3	%		67.7	%

1 During the first quarter, we entered into an agreement under the terms of an existing lease to substitute two properties with a tenant in exchange for one new property of equal value. Property substitutions are not included in the acquisition/disposition activity, however will affect the total number of properties reported as of December 31, 2023.

2Includes 7.8%, 7.5%, 7.9%, 7.9%, and 8.5%, related to tenants not required to provide financial information under the terms of our lease, but whose financial statements are available publicly at December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, respectively.

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Diversification: Tenants & Brands

Top 20 Tenants

Tenant	Property Type	# Properties		ABR (’000s)		ABR as a % of Total Portfolio			Square Feet (’000s)		SF as a % of Total Portfolio
Roskam Baking Company*	Food Processing		7	$	15,917		4.1	%		2,250		5.9	%
AHF, LLC*	Distribution & Warehouse/ Manufacturing		8		9,378		2.4	%		2,284		6.0	%
Joseph T. Ryerson & Son, Inc	Distribution & Warehouse		11		7,780		2.0	%		1,599		4.2	%
Jack’s Family Restaurants LP*	Quick Service Restaurants		43		7,456		1.9	%		147		0.3	%
J. Alexander’s, LLC*	Casual Dining		16		6,207		1.6	%		131		0.3	%
Axcelis Technologies, Inc.	Flex and R&D		1		6,126		1.6	%		417		1.1	%
Salm Partners, LLC*	Food Processing		2		6,062		1.5	%		368		1.0	%
Red Lobster Hospitality & Red Lobster Restaurants LLC*	Casual Dining		18		6,060		1.5	%		147		0.4	%
Hensley & Company*	Distribution & Warehouse		3		5,989		1.5	%		577		1.5	%
Dollar General Corporation	General Merchandise		60		5,977		1.5	%		562		1.5	%
Total Top 10 Tenants			169	$	76,952		19.6	%		8,482		22.2	%
BluePearl Holdings, LLC**	Animal Health Services		13	$	5,693		1.4	%		165		0.4	%
Krispy Kreme Doughnut Corporation	Quick Service Restaurants/ Food Processing		27		5,538		1.4	%		156		0.4	%
Outback Steakhouse of Florida LLC*1	Casual Dining		22		5,454		1.4	%		140		0.4	%
Tractor Supply Company	General Merchandise		21		5,360		1.4	%		417		1.1	%
Big Tex Trailer Manufacturing, Inc.*	Automotive/ Distribution & Warehouse/ Manufacturing/ Corporate Headquarters		17		5,056		1.3	%		1,302		3.4	%
Nestle’ Dreyer’s Ice Cream Company2	Cold Storage		1		4,611		1.2	%		309		0.8	%
Carvana, LLC*	Industrial Services		2		4,590		1.2	%		230		0.6	%
Arkansas Surgical Hospital	Surgical		1		4,588		1.2	%		129		0.3	%
Klosterman Bakery*	Food Processing		11		4,568		1.1	%		549		1.4	%
Chiquita Holdings Limited	Food Processing		1		4,420		1.1	%		335		0.9	%
Total Top 20 Tenants			285	$	126,830		32.3	%		12,214		31.9	%

1Nestle’s ABR excludes $1.6 million of rent paid under a sub-lease for an additional property, which will convert to a prime lease no later than August 2024

*Subject to a master lease.

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

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Top 20 Tenant Descriptions1

 

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Top 20 Tenant Descriptions1 (continued)

 

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Top 20 Brands

Brand	Property Type	# Properties		ABR (’000s)		ABR as a % of Total Portfolio			Square Feet (’000s)		SF as a % of Total Portfolio
Roskam Baking Company, LLC*	Food Processing		7	$	15,917		4.1	%		2,250		5.9	%
AHF Products*	Distribution & Warehouse/ Manufacturing		8		9,378		2.4	%		2,284		6.0	%
Ryerson	Distribution & Warehouse		11		7,780		2.0	%		1,599		4.2	%
Jack’s Family Restaurants*	Quick Service Restaurants		43		7,456		1.9	%		147		0.4	%
Axcelis	Flex and R&D		1		6,126		1.6	%		417		1.1	%
Salm Partners, LLC*	Food Processing		2		6,062		1.5	%		368		1.0	%
Red Lobster*	Casual Dining		18		6,060		1.5	%		147		0.3	%
Hensley*	Distribution & Warehouse		3		5,989		1.5	%		577		1.5	%
Dollar General	General Merchandise		60		5,977		1.5	%		562		1.5	%
BluePearl Veterinary Partners**	Animal Health Services		13		5,693		1.5	%		165		0.4	%
Total Top 10 Brands			166	$	76,438		19.5	%		8,516		22.3	%
Krispy Kreme	Quick Service Restaurants/ Food Processing		27	$	5,538		1.4	%		156		0.4	%
Bob Evans Farms*1	Casual Dining/ Food Processing		21		5,498		1.4	%		281		0.7	%
Tractor Supply Company	General Merchandise		21		5,360		1.4	%		417		1.1	%
Big Tex Trailers*	Automotive/ Distribution & Warehouse/ Manufacturing/ Corporate Headquarters		17		5,056		1.3	%		1,302		3.4	%
Outback Steakhouse*	Casual Dining		20		4,718		1.2	%		126		0.3	%
Nestle’	Cold Storage		1		4,611		1.2	%		309		0.8	%
Carvana*	Industrial Services		2		4,590		1.2	%		230		0.6	%
Arkansas Surgical Hospital	Surgical		1		4,588		1.2	%		129		0.3	%
Klosterman Bakery*	Food Processing		11		4,568		1.1	%		549		1.5	%
Chiquita Holdings Limited	Food Processing		1		4,420		1.1	%		335		0.9	%
Total Top 20 Brands			288	$	125,385		32.0	%		12,350		32.3	%

1Nestle’s ABR excludes $1.6 million of rent paid under a sub-lease for an additional property, which will convert to a prime lease no later than August 2024

*Subject to a master lease.

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

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Diversification: Property Type

(rent percentages based on ABR)

 

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Diversification: Property Type (continued)

Property Type	# Properties		ABR (’000s)		ABR as a % of Total Portfolio			Square Feet (’000s)		SF as a % of Total Portfolio
Industrial
Manufacturing		80	$	65,675		16.8	%		12,178		31.8	%
Distribution & Warehouse		45		51,859		13.2	%		9,212		24.1	%
Food Processing		33		46,630		11.9	%		5,442		14.2	%
Flex and R&D		6		16,061		4.1	%		1,157		3.0	%
Industrial Services		23		11,877		3.0	%		607		1.6	%
Cold Storage		4		9,978		2.5	%		724		1.9	%
Untenanted		1		-		0.0	%		122		0.3	%
Industrial Total		192		202,080		51.5	%		29,442		76.9	%
Healthcare
Clinical		52		27,570		7.0	%		1,090		2.9	%
Healthcare Services		29		11,853		3.0	%		478		1.2	%
Animal Health Services		27		11,054		2.8	%		405		1.1	%
Surgical		12		10,675		2.7	%		329		0.9	%
Life Science		9		8,011		2.1	%		550		1.4	%
Healthcare Total		129		69,163		17.6	%		2,852		7.5	%
Restaurant
Casual Dining		100		27,167		7.0	%		662		1.7	%
Quick Service Restaurants		148		25,966		6.6	%		502		1.3	%
Restaurant Total		248		53,133		13.6	%		1,164		3.0	%
Retail
General Merchandise		132		25,018		6.4	%		1,865		4.9	%
Automotive		64		11,790		3.0	%		757		1.9	%
Home Furnishings		13		7,265		1.9	%		797		2.1	%
Child Care		2		726		0.1	%		20		0.1	%
Retail Total		211		44,799		11.4	%		3,439		9.0	%
Office
Strategic Operations		6		10,450		2.7	%		632		1.7	%
Corporate Headquarters		7		8,527		2.2	%		409		1.1	%
Call Center		2		4,049		1.0	%		287		0.7	%
Untenanted		1		—		0.0	%		46		0.1	%
Office Total		16		23,026		5.9	%		1,374		3.6	%
Total		796	$	392,201		100.0	%		38,271		100.0	%

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Key Statistics by Property Type

	Q4 2023			Q3 2023			Q2 2023			Q1 2023			Q4 2022
Industrial
Number of properties		192			193			195			193			195
Square feet (000s)		29,442			29,387			29,686			30,142			29,947
Weighted average lease term (years)		11.7			11.5			11.8			11.9			11.2
Weighted average annual rent escalation		2.0	%		2.0	%		2.0	%		2.0	%		2.0	%
Percentage of total ABR		51.5	%		51.2	%		51.6	%		51.8	%		51.5	%
Healthcare
Number of properties		129			129			129			130			130
Square feet (000s)		2,852			2,851			2,852			2,870			2,870
Weighted average lease term (years)		6.6			6.8			6.8			7.0			8.2
Weighted average annual rent escalation		2.4	%		2.4	%		2.3	%		2.3	%		2.2	%
Percentage of total ABR		17.6	%		17.6	%		17.5	%		17.4	%		17.1	%
Restaurant
Number of properties		248			248			247			247			248
Square feet (000s)		1,164			1,172			1,172			1,172			1,177
Weighted average lease term (years)		13.9			13.9			14.1			14.3			14.8
Weighted average annual rent escalation		1.8	%		1.8	%		1.8	%		1.8	%		1.8	%
Percentage of total ABR		13.6	%		13.7	%		13.5	%		13.4	%		13.5	%
Retail
Number of properties		211			214			214			215			214
Square feet (000s)		3,439			3,455			3,455			3,459			3,448
Weighted average lease term (years)		9.4			9.7			10.0			10.2			10.5
Weighted average annual rent escalation		1.6	%		1.6	%		1.6	%		1.6	%		1.6	%
Percentage of total ABR		11.4	%		11.6	%		11.6	%		11.6	%		11.5	%
Office
Number of properties		16			16			16			16			17
Square feet (000s)		1,374			1,375			1,374			1,415			1,697
Weighted average lease term (years)		5.3			5.6			5.9			6.0			6.1
Weighted average annual rent escalation		2.5	%		2.5	%		2.5	%		2.5	%		2.5	%
Percentage of total ABR		5.9	%		5.9	%		5.8	%		5.8	%		6.4	%

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Diversification: Tenant Industry

Industry	# Properties		ABR (’000s)		ABR as a % of Total Portfolio			Square Feet (’000s)		SF as a % of Total Portfolio
Healthcare Facilities		104	$	54,973		14.0	%		2,062		5.4	%
Restaurants		251		53,973		13.8	%		1,207		3.2	%
Packaged Foods & Meats		29		41,046		10.5	%		4,713		12.3	%
Distributors		27		17,477		4.5	%		2,757		7.2	%
Auto Parts & Equipment		44		15,599		4.0	%		2,710		7.1	%
Specialty Stores		31		14,362		3.7	%		1,338		3.5	%
Food Distributors		8		14,206		3.6	%		1,712		4.5	%
Home Furnishing Retail		18		12,914		3.3	%		1,858		4.9	%
Specialized Consumer Services		45		11,842		3.0	%		709		1.9	%
Metal & Glass Containers		8		10,229		2.6	%		2,206		5.8	%
General Merchandise Stores		96		9,716		2.5	%		880		2.3	%
Industrial Machinery		20		9,654		2.5	%		1,949		5.1	%
Forest Products		8		9,378		2.4	%		2,284		6.0	%
Healthcare Services		18		9,371		2.4	%		515		1.3	%
Internet & Direct Marketing Retail		3		7,057		1.8	%		447		1.2	%
Other (38 industries)		84		100,404		25.4	%		10,700		27.7	%
Untenanted properties		2		—		—			224		0.6	%
Total		796	$	392,201		100.0	%		38,271		100.0	%

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Diversification: Geography

(rent percentages based on ABR)

 

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		69	$	38,110		9.7	%		3,603		9.4	%	WA		15	$	4,384		1.1	%		150		0.4	%
MI		55		33,060		8.4	%		3,810		10.0	%	LA		4		3,407		0.9	%		194		0.5	%
IL		32		24,383		6.2	%		2,424		6.3	%	MS		11		3,370		0.9	%		430		1.1	%
WI		35		23,096		5.9	%		2,163		5.7	%	NE		6		3,286		0.8	%		509		1.3	%
CA		13		19,617		5.0	%		1,718		4.5	%	SC		13		2,986		0.8	%		308		0.8	%
FL		42		16,319		4.2	%		840		2.2	%	IA		4		2,819		0.7	%		622		1.6	%
OH		47		16,308		4.2	%		1,582		4.1	%	NM		9		2,779		0.7	%		107		0.3	%
IN		32		16,240		4.1	%		1,906		5.0	%	CO		4		2,545		0.6	%		126		0.3	%
MN		21		15,668		4.0	%		2,500		6.5	%	UT		3		2,492		0.6	%		280		0.7	%
TN		49		15,225		3.9	%		1,093		2.9	%	MD		3		2,174		0.6	%		205		0.5	%
NC		36		12,491		3.2	%		1,135		3.0	%	CT		2		1,837		0.5	%		55		0.1	%
AL		53		12,418		3.2	%		873		2.3	%	ND		3		1,726		0.4	%		48		0.1	%
AZ		9		11,929		3.0	%		909		2.4	%	MT		7		1,582		0.4	%		43		0.1	%
GA		33		11,894		3.0	%		1,576		4.1	%	DE		4		1,180		0.3	%		133		0.3	%
KY		24		9,832		2.5	%		962		2.5	%	VT		2		426		0.1	%		20		0.1	%
PA		22		9,807		2.5	%		1,836		4.8	%	WY		1		307		0.1	%		25		0.1	%
NY		26		9,467		2.4	%		680		1.8	%	NV		1		272		0.1	%		6		0.0	%
OK		24		8,415		2.1	%		990		2.6	%	OR		1		136		0.0	%		9		0.0	%
AR		11		7,855		2.0	%		283		0.7	%	SD		1		81		0.0	%		9		0.0	%
MA		3		6,548		1.7	%		444		1.2	%	Total U.S.		789		383,657		97.8	%		37,841		98.8	%
MO		12		6,231		1.6	%		1,138		3.0	%	BC		2		4,992		1.2	%		253		0.7	%
VA		17		5,550		1.4	%		204		0.5	%	ON		3		2,168		0.6	%		101		0.3	%
KS		10		5,495		1.4	%		643		1.7	%	AB		1		1,027		0.3	%		55		0.1	%
WV		17		4,997		1.3	%		884		2.3	%	MB		1		357		0.1	%		21		0.1	%
NJ		3		4,913		1.3	%		366		1.0	%	Total Canada		7		8,544		2.2	%		430		1.2	%
													Grand Total		796	$	392,201		100.0	%		38,271		100.0	%

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Lease Expirations

(rent percentages based on ABR)

 

Expiration Year	# Properties		# Leases		ABR (’000s)		ABR as a % of Total Portfolio			Square Feet (’000s)		SF as a % of Total Portfolio
2024		5		5	$	4,817		1.2	%		482		1.3	%
2025		19		21		7,105		1.8	%		394		1.0	%
2026		34		36		17,843		4.5	%		1,153		3.0	%
2027		29		30		24,903		6.3	%		2,079		5.4	%
2028		36		37		23,144		5.9	%		1,930		5.0	%
2029		73		74		23,921		6.1	%		2,754		7.2	%
2030		93		93		53,364		13.6	%		4,985		13.0	%
2031		33		33		8,724		2.2	%		805		2.1	%
2032		62		63		32,285		8.2	%		3,469		9.1	%
2033		50		50		19,398		4.9	%		1,593		4.2	%
2034		35		35		8,916		2.3	%		780		2.0	%
2035		19		19		13,947		3.6	%		2,021		5.3	%
2036		87		87		27,227		6.9	%		2,781		7.3	%
2037		20		20		16,284		4.2	%		1,110		2.9	%
2038		39		39		13,868		3.5	%		1,226		3.2	%
2039		11		11		8,125		2.1	%		928		2.4	%
2040		31		31		5,877		1.5	%		312		0.8	%
2041		38		38		16,507		4.2	%		1,363		3.6	%
2042		58		58		44,324		11.3	%		4,803		12.5	%
2043		12		12		12,107		3.1	%		795		2.1	%
Thereafter		10		10		9,515		2.6	%		2,284		6.0	%
Untenanted properties		2		—		—		—			224		0.6	%
Total		796		802		392,201		100.0	%		38,271		100.0	%

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Occupancy

Occupancy by Rentable Square Footage

 

Change in Occupancy

	Number of properties
Vacant properties at January 1, 2023		3
Lease expirations1		2
Leasing activities		(3	)
Vacant dispositions		—
Vacant properties at March 31, 2023		2
Lease expirations1		3
Leasing activities		(3	)
Vacant dispositions		—
Vacant properties at June 30, 2023		2
Lease expirations1		3
Leasing activities		(3	)
Vacant dispositions		—
Vacant properties at September 30, 2023		2
Lease expirations1		3
Leasing activities		(3	)
Vacant dispositions	-
Vacant properties at December 31, 2023		2

1Includes scheduled and unscheduled expirations (including leases rejected in bankruptcy), as well as future expirations resolved in the periods indicated above.

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Definitions and Explanations

Adjusted NOI, Annualized Adjusted NOI, Adjusted Cash NOI and Annualized Adjusted Cash NOI: Our reported results and net earnings per diluted share are presented in accordance with accounting principles generally accepted in the United States of America (GAAP). Adjusted NOI and Adjusted Cash NOI are non-GAAP financial measures that we believe are useful to assess property-level performance. We compute Adjusted NOI by adjusting Adjusted EBITDAre (defined below) to exclude general and administrative expenses incurred at the corporate level. Given the net lease nature of our portfolio, we do not incur general and administrative expenses at the property level. To compute Adjusted Cash NOI, we adjust Adjusted NOI to exclude non-cash items included in total revenues and property expenses, such as straight-line rental revenue and other amortization and non-cash items, based on an estimate calculated as if all investment and disposition activity that took place during the quarter had occurred on the first day of the quarter. We then annualize quarterly Adjusted NOI and Adjusted Cash NOI by multiplying each amount by four to compute Annualized Adjusted NOI and Annualized Adjusted Cash NOI, respectively, which are also non-GAAP financial measures. We believe Adjusted NOI and Adjusted Cash NOI provide useful and relevant information because they reflect only those income and expense items that are incurred at the property level and present such items on an unlevered basis. We believe that the exclusion of certain non-cash revenues and expenses from Adjusted Cash NOI is a useful supplemental measure for investors to consider because it will help them to better assess our operating performance without the distortions created by non-cash revenues or expenses. You should not unduly rely on Annualized Adjusted NOI and Annualized Adjusted Cash NOI as they are based on assumptions and estimates that may prove to be inaccurate. Our actual reported Adjusted NOI and Adjusted Cash NOI for future periods may be significantly different from our Annualized Adjusted NOI and Annualized Adjusted Cash NOI. Additionally, our computation of Adjusted NOI and Adjusted Cash NOI may differ from the methodology for calculating these metrics used by companies in our industry, and, therefore, may not be comparable to similarly titled measures reported by other companies.

Adjusted Secured Overnight Financing Rate (SOFR): We define Adjusted SOFR as the current one month term SOFR plus an adjustment of 0.10% per the terms of our credit facilities.

Annualized Base Rent (ABR):We define ABR as the annualized contractual cash rent due for the last month of the reporting period, excluding the impacts of short-term rent deferrals, abatements, or free rent, and adjusted to remove rent from properties sold during the month and to include a full month of contractual cash rent for investments made during the month.

Cash Capitalization Rate: Cash Capitalization Rate represents either (1) for acquisitions and new developments, the estimated first year cash yield to be generated on a real estate investment, 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, or (2) for disposition properties, the estimated first year cash yield to be generated subsequent to disposition based on contractually specified cash base rent divided by the disposition price.

EBITDA, EBITDAre, Adjusted EBITDAre, and Annualized Adjusted EBITDAre: EBITDA, EBITDAre, Adjusted EBITDAre, and Annualized Adjusted EBITDAre are non-GAAP financial measures. We compute EBITDA as earnings before interest, income taxes and depreciation and amortization. EBITDA is a measure commonly used in our industry. We believe that this ratio provides investors and analysts with a measure of our performance that includes our operating results unaffected by the differences in capital structures, capital investment cycles and useful life of related assets compared to other companies in our industry. We compute EBITDAre in accordance with the definition adopted by Nareit. Nareit defines EBITDAre as EBITDA excluding gains (loss) from the sales of depreciable property and provisions for impairment on investment in real estate. We believe EBITDA and EBITDAre are useful to investors and analysts because they provide important supplemental information about our operating performance exclusive of certain non-cash and other costs. Adjusted EBITDAre represents EBITDAre, adjusted to reflect revenue producing investments and dispositions for the quarter as if such investments and dispositions had occurred at the beginning of the quarter, and to exclude certain GAAP income and expense amounts that are either non-cash, such as cost of debt extinguishments, realized or unrealized gains and losses on foreign currency transactions, or gains on insurance recoveries, or that we believe are one time, or unusual in nature because they relate to unique circumstances or transactions that had not previously occurred and which we do not anticipate occurring in the future, and to eliminate the impact of lease termination fees, and other items that are not a result of normal operations. While investments in developments have an immediate impact to Net Debt, we do not make an adjustment to EBITDAre until the quarter in which the lease commences. We then annualize quarterly Adjusted EBITDAre by multiplying it by four to compute Annualized Adjusted EBITDAre. Our reported EBITDA, EBITDAre, Adjusted EBITDAre, and Annualized Adjusted EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider these measures as alternatives to net income or cash flows from operating activities determined in accordance with GAAP.

Funds From Operations (FFO), Core Funds From Operations (Core FFO), and Adjusted Funds From Operations (AFFO): FFO, Core FFO, and AFFO are non-GAAP measures. We believe the use of FFO, Core FFO, and AFFO are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO, Core FFO, and AFFO should not be considered alternatives to net income as a performance measure or to cash flows from operations, as reported on our statement of cash flows, or as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. We compute Core FFO by adjusting FFO 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 gain on insurance recoveries, cost of debt extinguishments, unrealized and realized gains or losses on foreign currency transactions, severance and executive transition costs, and other extraordinary items. We compute 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.

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Definitions and Explanations (continued)

GAAP Capitalization Rate: GAAP Capitalization Rate represents the estimated first year GAAP yield to be generated on a real estate investment, which was computed at the time of investment based on the first full year of rental income computed in accordance with GAAP, divided by the purchase price including capitalized costs for the property.

Gross Debt: We define Gross Debt as total debt plus debt issuance costs and original issuance discount.

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

Occupancy: Occupancy or a specified percentage of our portfolio that is “occupied” 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.

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

Definitions Related to Development Properties:

•Completion Date: The month in which the development was fully completed and was made available for occupancy.

•Initial Purchase Price: Initial Purchase Price represents the initial contractual price of the property, typically representing purchase of undeveloped land or properties, including closing costs.

•Estimated Project Development Costs: Represents the estimated costs to be incurred to complete development of each project. We expect to update our estimates upon completion of the project, or sooner if there are any significant changes to expected costs from quarter to quarter. Excludes capitalized costs consisting of capitalized interest and other acquisition costs.

•Estimated Total Project Investment: Represents the sum of the Initial Purchase Price and the Estimated Project Development Costs.

•Estimated Cash Capitalization Rate: Calculated by dividing the estimated first year cash yield to be generated on a real estate investment by the Estimated Total Project Investment for the property.

•Start Date: The Start Date represents the period in which we have begun physical construction on a property.

•Target Completion Date: The Target Completion Date is our current estimate of the period in which we will have substantially completed a project and the project is made available for occupancy. We expect to update our timing estimates on a quarterly basis.

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2024 Broadstone Net Lease, LLC. All rights reserved. 34