Broadstone Net Lease, Inc. (BNL) SEC Filings & Earnings Calls

Construction and lease-up risk for build-to-suit developments; tenant concentration in retail sector.

“Two retail tenants; construction completion and lease commencement subject to risks.”

Forward settlement risk: Company may owe cash or shares if elects cash settlement, creating potential liability.

“the Company may also elect to cash or net share settle all or a portion of its obligations under the Forward Sale Agreements, in which case the Company may receive, or the Company may owe, cash or shares of Common Stock” · word for word

Share dilution: Upon settlement, 12.65M new shares will be issued, diluting existing shareholders.

“the Company expects to physically settle the Forward Sale Agreements (by the delivery of shares of Common Stock) and receive proceeds” · word for word

Increased leverage from credit agreement amendments may raise financial risk if not accompanied by asset growth.

“Amendments to revolving and term loan credit agreements suggest increased debt capacity.”

Interest rate sensitivity and tenant concentration risk

“Forward-looking statements mention inflation and interest rate fluctuations”

Interest Rate Risk

“Elevated interest rates have compressed returns on new investments and limited transaction activity.”

Impairment Risk

“Recognized $3.5 million impairment in Q2 2026 due to changes in hold strategy.”

Elevated Interest Rate Environment Constraining Investment Activity

“The sustained high-rate environment during this period exceeded movements in commercial real estate capitalization rates, resulting in compression of returns on new investments.” · word for word

Impairment Risk on Select Properties

“During the three months ended June 30, 2026, we recognized $3.5 million of impairment resulting primarily from changes in our long-term hold strategy with respect to the individual properties.” · word for word

Interest Expense Increase from Variable-Rate Debt

“Interest expense increased 23.9% for the six months ended June 30, 2026, primarily due to increased borrowings on our variable-rate USD Revolving Credit Facility.”

Development completion and tenant credit risk

“Target stabilization date March 2027; tenant is Fortune 20 investment-grade”

Tenant concentration risk with Tesla; single-tenant exposure.

“build-to-suit development for Tesla, Inc” · word for word

Development completion risk; project not yet stabilized.

“expected to rent commence in the fourth quarter of 2027” · word for word

Elevated Interest Rate Environment Constraining Investment Activity

“The sustained high-rate environment during this period exceeded movements in commercial real estate capitalization rates, resulting in compression of returns on new investments.” · word for word

Seller Pricing Expectations Limiting Transaction Volume

“Market expectations regarding potential future monetary policy relief contributed to net lease property sellers maintaining elevated pricing expectations, which continued to limit transaction activity.” · word for word

No explicit risk factors discussed; general REIT risks including interest rate and tenant financial health.

“Forward-looking statements mention risks including inflation, interest rates, local real estate conditions, tenant financial health.”

Leverage Slightly Above Target

“Net Debt to Annualized Adjusted EBITDAre actual 5.77x vs target 5.5x, resulting in threshold-level bonus payout.”

Relative TSR Volatility

“2022 rTSR grant paid out at 43% of target (13th percentile vs peers), while 2023 rTSR grant paid out at 188.5% of target (85th percentile vs peers), indicating significant variability in relative performance.”

Development completion risk: Projects have target stabilization dates in 2026-2027; delays could impact rental income.

“Target Stabilization Date/Stabilized Date: Nov. 2026 (Academy Sports), May. 2027 (Amazon)”

Tenant concentration: Amazon and Academy Sports are single tenants; any issues could impact these investments.

“Amazon.com Services, LLC (Sarasota, FL)...Academy Sports (Magnolia, TX)”

Tenant credit concentration risk

“only approximately 20.2% of our ABR came from tenants who had an investment grade credit rating.” · word for word

Interest rate sensitivity

“An increase in market interest rates could increase our interest costs on existing and future debt and could adversely affect our stock price” · word for word

Property type concentration risk

“approximately 61.9% of our ABR came from industrial properties and 30.1% from retail properties.” · word for word

Interest rate sensitivity due to floating rate debt and swap maturities

“Interest Rate Swaps and Debt & Swap Maturities sections”

Tenant concentration risk from diversified but single-tenant net lease model

“Diversification: Tenants and Brands section”

Tenant-related headlines could impact performance; guidance sensitive to timing of investments and dispositions.

“despite recent tenant related headlines; per share results are sensitive to both the timing and amount of real estate investments, property dispositions, and capital markets activities”

Construction and development risks including delays, cost overruns, and tenant credit risk.

“Forward-looking statements mention risks related to local real estate conditions, tenant financial health, and timing of property investments.”

Interest rate and inflation sensitivity could impact project returns and financing costs.

“Risk factors include increases in inflation and/or interest rates.”

Macroeconomic headwinds limiting acquisition volume

“These challenging macroeconomic conditions have limited, and may continue to limit, the ability of commercial real estate owners, including us, to complete real estate acquisitions at volume and accretion levels consistent with years prior to this environment, resulting in lower earnings growth rates compared to historical periods.” · word for word

Impairment risk from property sales

“During the three months ended September 30, 2025, we recognized $7.0 million of impairment primarily from changes in our long-term hold strategy with respect to the individual properties.” · word for word