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Broadstone Net Lease (BNL) is like Realty Income (O) for a highly diversified portfolio of commercial properties, including industrial, healthcare, office, and retail sectors.

Think of BNL as a "landlord to many businesses," similar to how Realty Income (O) operates, where tenants are responsible for most property expenses, generating stable, long-term income.

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• Industrial Property Leasing: BNL provides long-term net leases for single-tenant industrial properties.
• Healthcare Property Leasing: BNL provides long-term net leases for single-tenant healthcare properties.
• Restaurant Property Leasing: BNL provides long-term net leases for single-tenant restaurant properties.
• Office Property Leasing: BNL provides long-term net leases for single-tenant office properties.
• Retail Property Leasing: BNL provides long-term net leases for single-tenant retail properties.

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Broadstone Net Lease (BNL) is a real estate investment trust (REIT) whose business involves leasing properties to commercial tenants. Therefore, its major customers are the companies that lease properties from its portfolio. Based on disclosures as of September 30, 2020, BNL's portfolio is diversified across various industries and tenants. The following are some of its major tenants by annualized base rent:

• Bon Secours Mercy Health
• Red Lobster
• ArcLight Cinemas
• CVS Health Corporation (NYSE: CVS)
• LifePoint Health
• OrthoCarolina
• U-Haul International (subsidiary of Amerco, NASDAQ: UHAL)
• Chewy, Inc. (NYSE: CHWY)

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Deloitte & Touche LLP

Goodwin Procter LLP

JPMorgan Chase & Co. (JPM)

Computershare Trust Company, N.A.

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John D. Moragne Chief Executive Officer and Director

John D. Moragne has served as Broadstone Net Lease's Chief Executive Officer and a member of its Board of Directors since March 2023. Prior to this, he held various roles within the Company, including Executive Vice President and Chief Operating Officer from 2018 to 2023, and General Counsel and Chief Compliance Officer from 2016 through 2018. Before joining Broadstone Net Lease, Mr. Moragne worked as a corporate, securities, and M&A attorney from 2007 to 2016, providing legal counsel to BNL since its inception in 2007.

Kevin M. Fennell Executive Vice President, Chief Financial Officer and Treasurer

Kevin M. Fennell has served as Broadstone Net Lease's Executive Vice President and Chief Financial Officer since March 2023, and as Treasurer since September 2024. He is responsible for leading the Company's accounting, tax, internal audit, finance, capital markets, investor relations, and IT/IS functions. Mr. Fennell previously served as the Company's Senior Vice President, Capital Markets & Credit Risk from March 2019 to March 2023.

Ryan M. Albano President and Chief Operating Officer

Ryan M. Albano has served as Broadstone Net Lease's President and Chief Operating Officer since March 2023. In this role, he oversees the Company's investment strategy and real estate operations, including acquisitions, build-to-suit development, dispositions, and property management. Mr. Albano has been with the Company since 2013, previously holding positions such as Executive Vice President and Chief Financial Officer from February 2017 to March 2023, and Vice President of Finance from 2013 until February 2017. Before joining Broadstone, Mr. Albano served in various roles for Manning & Napier, Inc. from 2011 to 2013, assisting in their IPO and acting as Assistant CFO of their mutual fund division. He also worked for KPMG LLP in audit roles for both public and private companies from 2004-2011.

John D. Callan Jr. Senior Vice President, General Counsel and Secretary

John D. Callan Jr. has served as Broadstone Net Lease's Senior Vice President since February 2020, as General Counsel since August 2018, and as Secretary since July 2021. His responsibilities include overseeing the legal, corporate governance, and risk management affairs of the Company. Prior to Broadstone, he was Corporate Counsel at Kodak Alaris from 2015 to 2017 and a corporate and securities attorney at Harter Secrest & Emery from 2011 to 2015.

Michael B. Caruso Senior Vice President, Underwriting and Strategy

Michael B. Caruso has served as Broadstone Net Lease's Senior Vice President, Underwriting & Strategy since October 2023. He oversees real estate underwriting, investment return modeling, property management, leasing, dispositions, and general investment strategy and research. Mr. Caruso joined Broadstone in November 2015 and has served in various capacities, including Senior Vice President, Corporate Strategy and Investor Relations, and Vice President, Finance.

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The key risks to Broadstone Net Lease (BNL) primarily revolve around the financial health of its tenants, the impact of interest rate fluctuations, and the broader commercial real estate market dynamics.

1. Tenant Credit Risk, Bankruptcies, and Vacancies: As a net-lease REIT specializing in single-tenant properties, BNL is highly susceptible to the financial performance and creditworthiness of its tenants. A downturn in a tenant's business or economic headwinds can lead to non-payment of rent or bankruptcies, resulting in property vacancies and loss of rental income. Re-leasing vacant single-tenant properties, especially those that are build-to-suit, can be challenging and costly. The company's decision to divest certain healthcare properties due to challenges like "Tenant bankruptcies, hands-on property management, heavier landlord responsibilities and costs" highlights the significance of this risk. Management has acknowledged tenant-specific credit issues and adopted a cautious stance in its future outlook.

2. Interest Rate Risk and Rising Borrowing Costs: REITs like BNL often rely on debt financing for property acquisitions and operations. Fluctuations in interest rates, particularly a "higher-for-longer" rate environment, can directly increase BNL's borrowing costs, thereby compressing its profit margins and potentially limiting its ability to acquire new properties or refinance existing debt favorably. Rising interest expenses are seen by investors as a "biggest counterweight" to the company's growth strategy.

3. Commercial Real Estate Market Volatility and Competition: BNL's performance is affected by the overall health and competitiveness of the commercial real estate market. Broader economic conditions, market volatility, and inflation can impact the valuation of BNL's properties and tenants' ability to meet lease obligations. The commercial real estate sector is highly competitive, with BNL facing competition from other REITs and various investors. This competition can limit access to attractive investment opportunities and exert pressure on property acquisition costs, rental rates, and yields, challenging BNL's growth and market position.

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The permanent shift towards remote and hybrid work models poses an emerging threat to the demand for traditional office properties, a segment of BNL's diversified portfolio. This shift fundamentally alters the need for centralized physical office space, potentially impacting long-term occupancy rates, lease durations, and property valuations.

The accelerating and evolving landscape of e-commerce, including last-mile logistics and dark store models, presents an emerging threat to traditional retail properties within BNL's portfolio. This evolution challenges the conventional utility and valuation of certain retail spaces, requiring adaptation to new consumer behaviors and fulfillment strategies.

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Broadstone Net Lease (BNL) is expected to drive future revenue growth over the next 2-3 years through a combination of strategic investments, organic rent growth, and focused portfolio management.

Here are the key drivers:

• New Property Acquisitions: BNL consistently targets new acquisitions to expand its portfolio. The company closed on $69.3 million of new acquisitions in Q3 2024 and plans for $500 million to $625 million in acquisitions for 2026. These investments contribute directly to increasing lease revenues.
• Build-to-Suit Developments: A cornerstone of BNL's differentiated strategy is its robust build-to-suit development pipeline. This approach provides visibility into future embedded revenue growth, with projects like the UNFI development, completed in late 2024, now fully contributing to earnings with attractive initial cash yields and annual rent escalations. BNL plans to continue growing this pipeline, aiming to add $500 million in build-to-suit projects in 2025.
• Contractual Rent Escalations: A significant portion of BNL's revenue growth is derived from contractual rent increases embedded in its long-term leases. For instance, the UNFI build-to-suit project features 2.5% annual rent escalations. New property acquisitions and revenue-generating capital expenditures in 2025 had a weighted average annual rent increase of 2.6%, contributing to a 2.0% same-store rental revenue growth in 2025.
• Portfolio Repositioning: BNL has strategically repositioned its portfolio by executing a "clinical healthcare simplification strategy" to focus on industrial, retail, and restaurant assets. This shift is aimed at establishing a foundation for attractive and sustainable growth in adjusted funds from operations (AFFO) per share. The company's continued focus on these higher-growth sectors, with 80% of its Q1 2025 investments weighted towards industrial properties, is expected to enhance overall portfolio performance and revenue generation.

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Share Issuance

• Broadstone Net Lease had 191,423,000 common shares issued and outstanding as of December 31, 2025, an increase from 188,626,000 shares at December 31, 2024.
• In February 2026, the company sold 621,487 shares of common stock on a forward basis through its at-the-market equity offering program, generating estimated net proceeds of approximately $11.0 million.

Inbound Investments

• In September 2025, Broadstone Net Lease completed a public offering of $350.0 million in 5.00% senior unsecured notes due in 2032. These proceeds were allocated to repaying borrowings on its unsecured revolving credit facility, funding real estate investments, and for general corporate purposes.
• In February 2025, the company extended its $1.0 billion revolving credit facility to March 2029 and secured a new $500.0 million unsecured term loan maturing in March 2028.

Capital Expenditures

• In 2025, Broadstone Net Lease made total investments of $748.4 million, which included $429.9 million in new property acquisitions, $209.3 million in build-to-suit developments, $100.8 million in transitional capital, and $8.3 million in revenue-generating capital expenditures. The primary focus of these investments was industrial properties ($663.4 million) and retail properties ($85.0 million).
• Annual capital expenditures for BNL were $413.853 million in 2024 and $170.746 million in 2023.
• For 2026, the company plans to invest between $500 million and $625 million in real estate properties, with $174.8 million in remaining estimated investments for build-to-suit developments to be funded through the fourth quarter of 2026, and an additional $7.0 million committed for revenue-generating capital expenditures with existing tenants. These ongoing investments support the company's build-to-suit pipeline, with a significant portion expected to come online in 2026 and 2027, primarily in industrial and retail sectors.