Broadstone Net Lease (BNL) Investor Day 2025 Presentation summary

Strategic achievements and portfolio repositioning

• Organizational restructuring in 2023 enhanced collaboration, operational efficiency, and data-driven decision-making, resulting in a more normalized fixed cost base and improved scalability through technology investments.

• Streamlined focus by selling $352 million in clinical healthcare assets in 2024, reducing exposure to 2.4% of ABR, and redeploying proceeds to drive annualized base rent and AFFO growth.

• Portfolio now features 61.2% industrial assets, up from 51.8% in 2023, with a weighted average lease term of 10.3 years and 2.2% average annual rent escalations.

• Proactive credit monitoring and asset management have minimized lost rent and mitigated tenant risk, with 94% of lost rent since 2022 concentrated in disposed clinical healthcare assets.

• Master lease structures and creative renewals have preserved value and provided flexibility during tenant bankruptcies and lease maturities.

Differentiated growth strategy and build-to-suit (BTS) development

• Growth strategy is anchored on three pillars: in-place portfolio, BTS developments, and stabilized acquisitions, with a focus on long-term, relationship-based capital deployment.

• BTS pipeline has scaled to $898 million in commitments since 2023, with $583 million in new commitments in 2025, providing $29.1 million in incremental ABR through Q1 2027.

• BTS projects offer higher yields (average 7.5% initial cap rate, 8.9% straight-line yield) and value creation, with limited development risk due to in-place leases and contract structures.

• Multi-channel sourcing and flexible capital allocation have enabled disciplined acquisitions, with 60% of stabilized investment volume since 2023 sourced through existing relationships.

• Transitional capital investments and partnerships with developers have created a robust pipeline and optionality for future growth.

Financial guidance, capital management, and shareholder returns

• 2026 AFFO per share guidance is $1.53–$1.57, representing 4.0% growth at the midpoint, with embedded 2026 ABR growth of 7.0%–8.0%.

• Projected NOI CAGR of 7.6% from 2024 to 2027, driven by in-place rent escalations, BTS rent commencements, and opportunistic acquisitions.

• Balance sheet remains investment grade (BBB/Baa2), with pro forma leverage targeted at ~6.0x and $1.0 billion in corporate liquidity.

• Dividend payout ratio targeted in the mid-70% range, with 13% cumulative dividend growth since 2021 and a current yield of 6.5%.

• Total shareholder return since 2023 is 32.8%, outpacing peers, though valuation multiple remains below the peer average, providing potential for further appreciation.