Broadstone Net Lease (BNL) Q2 2025 earnings summary

Executive summary

• Raised full-year 2025 AFFO guidance to $1.48–$1.50 per share, reflecting 4.2% growth at midpoint and 5.6% year-over-year growth in Q2 AFFO per share.

• Portfolio comprised 766 properties across 44 U.S. states and 4 Canadian provinces, 99.1% leased with only two properties vacant at quarter end and a weighted average remaining lease term of 9.7 years.

• Focus remains on industrial and retail net lease properties, with no tenant exceeding 4% of annualized base rent and strong tenant/geographic diversification.

• Strategic priorities include organic rent escalations, capital expenditures, build-to-suit developments, and a diversified acquisition pipeline.

• Macroeconomic headwinds, including higher interest rates, have slowed acquisition volume and earnings growth compared to prior years.

Financial highlights

• Q2 2025 adjusted funds from operations (AFFO) of $74.3M or $0.38 per share, up 5.6% year-over-year and sequentially.

• Lease revenues for Q2 2025 were $112.99M, up 6.7% year-over-year; net income for Q2 2025 was $19.8M ($0.10 per diluted share), down 44.8% year-over-year due to higher impairment charges.

• General and administrative expenses decreased 3.0% year-over-year to $9.6M; core G&A for Q2 was $6.9M, tracking at the low end of full-year expectations.

• Dividend declared at $0.29 per share, payable in October 2025.

• Net Debt to Annualized Adjusted EBITDAre was 5.3x as of June 30, 2025; Pro Forma Net Debt to Annualized Adjusted EBITDAre at 5.2x.

Outlook and guidance

• 2025 per share AFFO guidance increased to $1.48–$1.50, with investment volume expected between $500M–$700M and dispositions between $50M–$100M.

• Expecting mid-single-digit AFFO per share growth in 2026, 2027, and beyond, supported by committed build-to-suit pipeline.

• No material debt maturities until 2027; ample liquidity with $802.1M available under the revolving credit facility as of June 30, 2025.

• Focus remains on maintaining an investment grade balance sheet and leverage ratio below 6.0x.

• Build-to-suit investment goal of $500M remains in place, with robust deal flow anticipated into 2027.