EX-99.2 3 ck1424182-ex992_7.htm EX-99.2 ck1424182-ex992_7.htm

 

Exhibit 99.2

 

 

Q1 2021 QUARTERLY SUPPLEMENTAL INFORMATION Broadstone Net 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

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

Table of Contents

 

Section

Page

Company Overview

4

Quarterly Financial Summary

5

Balance Sheet

6

Income Statement Summary

7

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

8

EBITDA, EBITDAre, and Other Non-GAAP Operating Measures

9

Lease Revenues Detail

10

Capital Structure

11

Debt Outstanding

12

Net Debt Metrics

12

Covenants

13

Debt Maturities and Interest Rate Exposure

14

Acquisitions

15

Dispositions

15

Portfolio at a Glance: Key Metrics

16

Diversification: Tenants and Brands

17-18

Diversification: Property Type

19-20

Key Statistics by Property Type

21

Diversification: Tenant Industry

22

Diversification: Geography

23

Lease Expirations

24

Portfolio Occupancy

25

Definitions and Explanations

26-27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

2

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

About the Data

 

This data and other information described herein are as of and for the three months ended March 31, 2021 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 Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, including the financial statements and the management's discussion and analysis of financial condition and results of operations sections.

 

Stock Split

 

All share and per share data as of June 30, 2020 and March 31, 2020, contained herein, have been adjusted to reflect the four-for-one stock split that was effected on September 18, 2020.

 

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,” “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 the COVID-19 pandemic and its related impacts on us and our tenants, general economic conditions, local real estate conditions, tenant financial health, and property acquisitions and the timing of these 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.

 

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 | © 2021 Broadstone Net Lease, Inc. All rights reserved.

3

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

Company Overview

 

Broadstone Net Lease, Inc. (NYSE:BNL) (the “Company,” “BNL,” “us,” “our” and “we”) is an internally-managed REIT, formed as a Maryland corporation in 2007 that acquires, owns, and manages 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, office, and retail 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 their core business operations rather than real estate ownership.

 

 

Executive Management

Christopher J. Czarnecki

Chief Executive Officer, President, and Director

Ryan M. Albano

Executive Vice President and Chief Financial Officer

John D. Moragne

Executive Vice President, Chief Operating Officer, and Secretary

 

 

 

Board of Directors

Amy L. Tait

Chairman of the Board

Christopher J. Czarnecki

Chief Executive Officer and President

Laurie A. Hawkes

Lead Independent Director

 

David M. Jacobstein

Shekar Narasimhan

Geoffrey H. Rosenberger

James H. Watters

Agha S. Khan

 

 

 

Corporate Office & Contact Information

800 Clinton Square
Rochester, New York 14604
585-287-6500

info@broadstone.com
www.broadstone.com

 

Transfer Agent

Computershare Trust Company, N.A.

250 Royall Street

Canton, Massachusetts 02021

800-736-3001

 

 

 

 

 

 

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

4

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

Quarterly Financial Summary

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

 

 

 

Q1 2021

 

 

Q4 2020

 

 

Q3 2020

 

 

Q2 2020

 

 

Q1 2020

 

Financial Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in rental property, net

 

$

3,425,167

 

 

$

3,384,144

 

 

$

3,334,904

 

 

$

3,377,745

 

 

$

3,407,527

 

Total assets

 

 

4,206,045

 

 

 

4,258,483

 

 

 

4,204,469

 

 

 

4,144,055

 

 

 

4,274,054

 

Mortgage and notes payable, net

 

 

106,559

 

 

 

107,382

 

 

 

108,752

 

 

 

109,512

 

 

 

110,464

 

Unsecured term notes, net and revolver

 

 

1,398,283

 

 

 

1,433,796

 

 

 

1,433,495

 

 

 

1,921,392

 

 

 

2,025,887

 

Total liabilities

 

 

1,713,348

 

 

 

1,779,402

 

 

 

1,782,762

 

 

 

2,267,408

 

 

 

2,395,541

 

Total mezzanine equity

 

 

—

 

 

 

—

 

 

 

—

 

 

 

178,535

 

 

 

178,534

 

Total Broadstone Net Lease, Inc. stockholders'

   equity

 

 

2,312,532

 

 

 

2,299,105

 

 

 

2,191,794

 

 

 

1,591,633

 

 

 

1,593,437

 

Total equity (book value)

 

 

2,492,697

 

 

 

2,479,081

 

 

 

2,421,707

 

 

 

1,698,112

 

 

 

1,699,979

 

Revenues

 

 

82,698

 

 

 

82,291

 

 

 

80,744

 

 

 

80,371

 

 

 

78,231

 

Total operating expenses

 

 

47,963

 

 

 

46,078

 

 

 

57,496

 

 

 

50,345

 

 

 

47,045

 

Interest expense

 

 

16,108

 

 

 

17,123

 

 

 

18,511

 

 

 

19,513

 

 

 

20,991

 

Net income

 

 

23,960

 

 

 

17,619

 

 

 

9,711

 

 

 

17,098

 

 

 

11,848

 

Net earnings per common share,

   diluted

 

$

0.15

 

 

$

0.11

 

 

$

0.08

 

 

$

0.14

 

 

$

0.10

 

FFO

 

 

51,929

 

 

 

44,198

 

 

 

54,726

 

 

 

56,485

 

 

 

37,572

 

FFO per share, diluted

 

$

0.33

 

 

$

0.28

 

 

$

0.44

 

 

$

0.47

 

 

$

0.32

 

AFFO

 

 

49,410

 

 

 

46,894

 

 

 

47,077

 

 

 

46,056

 

 

 

41,068

 

AFFO per share, diluted

 

$

0.31

 

 

$

0.30

 

 

$

0.38

 

 

$

0.38

 

 

$

0.35

 

Net cash provided by operating activities

 

 

51,780

 

 

 

46,064

 

 

 

53,506

 

 

 

39,139

 

 

 

40,319

 

Net cash (used in) provided by investing

   activities

 

 

(67,661

)

 

 

(76,443

)

 

 

5,469

 

 

 

6,264

 

 

 

4,474

 

Net cash (used in) provided by financing

   activities

 

 

(76,497

)

 

 

32,120

 

 

 

40,170

 

 

 

(132,273

)

 

 

31,608

 

Distributions declared

 

 

39,653

 

 

 

39,299

 

 

 

20,477

 

 

 

13,099

 

 

 

38,560

 

Distributions declared per diluted share

 

$

0.250

 

 

$

0.250

 

 

$

0.135

 

 

$

0.110

 

 

$

0.330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Properties

 

 

661

 

 

 

641

 

 

 

628

 

 

 

633

 

 

 

636

 

Rentable square feet

 

28.4M

 

 

28.2M

 

 

27.3M

 

 

27.4M

 

 

27.4M

 

Occupancy

 

 

99.7

%

 

 

99.2

%

 

 

99.8

%

 

 

99.6

%

 

 

99.6

%

Weighted average remaining lease term (years)

 

 

10.6

 

 

 

10.7

 

 

 

10.8

 

 

 

11.0

 

 

 

11.3

 

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

5

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

Balance Sheet

(unaudited, in thousands)

 

 

 

March 31,

2021

 

 

December 31,

2020

 

 

September 30,

2020

 

 

June 30,

2020

 

 

March 31,

2020

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounted for using the operating

   method, net of accumulated

   depreciation

 

$

3,395,609

 

 

$

3,354,511

 

 

$

3,304,002

 

 

$

3,346,792

 

 

$

3,367,566

 

Accounted for using the direct financing

   method

 

 

28,991

 

 

 

29,066

 

 

 

30,902

 

 

 

30,953

 

 

 

39,961

 

Accounted for using the sales type

   method

 

 

567

 

 

 

567

 

 

 

—

 

 

 

—

 

 

 

—

 

Investment in rental property, net

 

 

3,425,167

 

 

 

3,384,144

 

 

 

3,334,904

 

 

 

3,377,745

 

 

 

3,407,527

 

Cash and cash equivalents

 

 

10,205

 

 

 

100,486

 

 

 

101,787

 

 

 

9,241

 

 

 

93,151

 

Accrued rental income

 

 

105,674

 

 

 

102,117

 

 

 

97,517

 

 

 

90,545

 

 

 

84,932

 

Tenant and other receivables, net

 

 

1,022

 

 

 

1,604

 

 

 

3,957

 

 

 

5,045

 

 

 

1,287

 

Prepaid expenses and other assets

 

 

18,862

 

 

 

22,277

 

 

 

19,522

 

 

 

9,819

 

 

 

12,397

 

Interest rate swap, assets

 

 

239

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Goodwill

 

 

339,769

 

 

 

339,769

 

 

 

339,769

 

 

 

339,769

 

 

 

339,769

 

Intangible lease assets, net

 

 

288,592

 

 

 

290,913

 

 

 

288,971

 

 

 

298,741

 

 

 

320,418

 

Debt issuance costs – unsecured

   revolving credit facility, net

 

 

5,842

 

 

 

6,435

 

 

 

7,027

 

 

 

1,782

 

 

 

2,081

 

Leasing fees, net

 

 

10,673

 

 

 

10,738

 

 

 

11,015

 

 

 

11,368

 

 

 

12,492

 

Total assets

 

$

4,206,045

 

 

$

4,258,483

 

 

$

4,204,469

 

 

$

4,144,055

 

 

$

4,274,054

 

Liabilities and equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured revolving credit facility

 

$

15,000

 

 

$

—

 

 

$

—

 

 

$

248,300

 

 

$

353,300

 

Mortgages and notes payable, net

 

 

106,559

 

 

 

107,382

 

 

 

108,752

 

 

 

109,512

 

 

 

110,464

 

Unsecured term notes, net

 

 

1,383,283

 

 

 

1,433,796

 

 

 

1,433,495

 

 

 

1,673,092

 

 

 

1,672,587

 

Interest rate swap, liabilities

 

 

43,662

 

 

 

72,103

 

 

 

81,326

 

 

 

85,678

 

 

 

79,622

 

Earnout liability

 

 

6,385

 

 

 

7,509

 

 

 

13,177

 

 

 

37,975

 

 

 

44,296

 

Accounts payable and other liabilities

 

 

71,072

 

 

 

74,936

 

 

 

55,339

 

 

 

25,550

 

 

 

35,835

 

Accrued interest payable

 

 

9,896

 

 

 

4,023

 

 

 

9,453

 

 

 

4,144

 

 

 

9,764

 

Intangible lease liabilities, net

 

 

77,491

 

 

 

79,653

 

 

 

81,220

 

 

 

83,157

 

 

 

89,673

 

Total liabilities

 

 

1,713,348

 

 

 

1,779,402

 

 

 

1,782,762

 

 

 

2,267,408

 

 

 

2,395,541

 

Mezzanine equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

66,376

 

 

 

66,376

 

Non-controlling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

112,159

 

 

 

112,158

 

Total mezzanine equity

 

 

—

 

 

 

—

 

 

 

—

 

 

 

178,535

 

 

 

178,534

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadstone Net Lease, Inc. stockholders'

   equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Common stock, $0.00025 par value

 

 

36

 

 

 

27

 

 

 

27

 

 

 

26

 

 

 

26

 

Class A Common Stock, $0.00025 par

   value

 

 

—

 

 

 

9

 

 

 

8

 

 

 

—

 

 

 

—

 

Additional paid-in capital

 

 

2,625,320

 

 

 

2,624,997

 

 

 

2,506,008

 

 

 

1,899,751

 

 

 

1,899,616

 

Cumulative distributions in excess of

   retained earnings

 

 

(274,140

)

 

 

(259,673

)

 

 

(239,520

)

 

 

(229,531

)

 

 

(233,067

)

Accumulated other comprehensive

   income

 

 

(38,684

)

 

 

(66,255

)

 

 

(74,729

)

 

 

(78,613

)

 

 

(73,138

)

Total Broadstone Net Lease, Inc.

   stockholders’ equity

 

 

2,312,532

 

 

 

2,299,105

 

 

 

2,191,794

 

 

 

1,591,633

 

 

 

1,593,437

 

Non-controlling interests

 

 

180,165

 

 

 

179,976

 

 

 

229,913

 

 

 

106,479

 

 

 

106,542

 

Total equity

 

 

2,492,697

 

 

 

2,479,081

 

 

 

2,421,707

 

 

 

1,698,112

 

 

 

1,699,979

 

Total liabilities, mezzanine

   and equity

 

$

4,206,045

 

 

$

4,258,483

 

 

$

4,204,469

 

 

$

4,144,055

 

 

$

4,274,054

 

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

6

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

 

Income Statement Summary

(unaudited, in thousands, except per share data)

 

 

 

Three Months Ended

 

 

 

March 31,

2021

 

 

December 31,

2020

 

 

September 30,

2020

 

 

June 30,

2020

 

 

March 31,

2020

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease revenues, net

 

$

82,698

 

 

$

82,291

 

 

$

80,744

 

 

$

80,371

 

 

$

78,231

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

30,713

 

 

 

30,182

 

 

 

31,363

 

 

 

39,921

 

 

 

31,219

 

Asset management fees

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,461

 

Property management fees

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,275

 

Property and operating expense

 

 

4,605

 

 

 

4,986

 

 

 

4,187

 

 

 

4,190

 

 

 

4,115

 

General and administrative

 

 

10,633

 

 

 

9,232

 

 

 

7,214

 

 

 

5,700

 

 

 

5,842

 

Provision for impairment of investment

   in rental properties

 

 

2,012

 

 

 

1,678

 

 

 

14,732

 

 

 

534

 

 

 

2,133

 

Total operating expenses

 

 

47,963

 

 

 

46,078

 

 

 

57,496

 

 

 

50,345

 

 

 

47,045

 

Other income (expenses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

5

 

 

 

4

 

 

 

—

 

 

 

11

 

 

 

9

 

Interest expense

 

 

(16,108

)

 

 

(17,123

)

 

 

(18,511

)

 

 

(19,513

)

 

 

(20,991

)

Cost of debt extinguishment

 

 

(126

)

 

 

(3

)

 

 

(392

)

 

 

—

 

 

 

(22

)

Gain on sale of real estate

 

 

4,733

 

 

 

5,260

 

 

 

1,060

 

 

 

1,046

 

 

 

7,619

 

Income taxes

 

 

(413

)

 

 

141

 

 

 

(129

)

 

 

(402

)

 

 

(549

)

Internalization expenses

 

 

—

 

 

 

(182

)

 

 

(1,929

)

 

 

(389

)

 

 

(1,205

)

Change in fair value of earnout liability

 

 

1,124

 

 

 

(6,706

)

 

 

6,362

 

 

 

6,321

 

 

 

(4,177

)

Other income (expenses)

 

 

10

 

 

 

15

 

 

 

2

 

 

 

(2

)

 

 

(22

)

Net income

 

 

23,960

 

 

 

17,619

 

 

 

9,711

 

 

 

17,098

 

 

 

11,848

 

Net income attributable to

   non-controlling interests

 

 

(1,737

)

 

 

(1,357

)

 

 

(961

)

 

 

(1,745

)

 

 

(1,032

)

Net income attributable to

   Broadstone Net Lease, Inc.

 

$

22,223

 

 

$

16,262

 

 

$

8,750

 

 

$

15,353

 

 

$

10,816

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic1

 

 

145,338

 

 

 

143,916

 

 

 

111,155

 

 

 

107,422

 

 

 

106,108

 

Diluted1

 

 

156,724

 

 

 

155,956

 

 

 

123,381

 

 

 

119,648

 

 

 

116,210

 

Net earnings per common share2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.15

 

 

$

0.11

 

 

$

0.08

 

 

$

0.14

 

 

$

0.10

 

1 Excludes 416, 341 and 216 weighted average shares of unvested restricted common stock for the three months ended March 31, 2021, December 31, 2020 and September 30, 2020, respectively.

2 Excludes $104, $85 and $46 from the numerator for the three months ended March 31, 2021, December 31, 2020 and September 30, 2020, respectively, related to dividends paid or declared on shares of unvested restricted common stock.

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

7

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

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

(unaudited, in thousands, except per share data)

 

 

 

Three Months Ended

 

 

 

March 31,

2021

 

 

December 31,

2020

 

 

September 30,

2020

 

 

June 30,

2020

 

 

March 31,

2020

 

Net income

 

$

23,960

 

 

$

17,619

 

 

$

9,711

 

 

$

17,098

 

 

$

11,848

 

Real property depreciation and

   amortization

 

 

30,690

 

 

 

30,161

 

 

 

31,343

 

 

 

39,899

 

 

 

31,210

 

Gain on sale of real estate

 

 

(4,733

)

 

 

(5,260

)

 

 

(1,060

)

 

 

(1,046

)

 

 

(7,619

)

Provision for impairment of investment

   in rental properties

 

 

2,012

 

 

 

1,678

 

 

 

14,732

 

 

 

534

 

 

 

2,133

 

FFO

 

$

51,929

 

 

$

44,198

 

 

$

54,726

 

 

$

56,485

 

 

$

37,572

 

Capital improvements / reserves

 

 

—

 

 

 

—

 

 

 

1,662

 

 

 

—

 

 

 

—

 

Straight-line rent adjustment

 

 

(4,632

)

 

 

(5,125

)

 

 

(6,943

)

 

 

(6,151

)

 

 

(1,612

)

Adjustment to provision for credit losses

 

 

(1

)

 

 

(6

)

 

 

(15

)

 

 

(110

)

 

 

(17

)

Cost of debt extinguishment

 

 

126

 

 

 

3

 

 

 

392

 

 

 

—

 

 

 

22

 

Amortization of debt issuance costs

 

 

914

 

 

 

917

 

 

 

819

 

 

 

821

 

 

 

888

 

Amortization of net mortgage premiums

 

 

(35

)

 

 

(36

)

 

 

(34

)

 

 

(37

)

 

 

(35

)

Gain on interest rate swaps and other

   non-cash interest expense

 

 

(41

)

 

 

(41

)

 

 

(42

)

 

 

(41

)

 

 

(42

)

Amortization of lease intangibles

 

 

(728

)

 

 

(1,150

)

 

 

151

 

 

 

1,019

 

 

 

(1,138

)

Internalization expenses

 

 

—

 

 

 

182

 

 

 

1,929

 

 

 

389

 

 

 

1,205

 

Stock-based compensation

 

 

1,769

 

 

 

1,193

 

 

 

796

 

 

 

—

 

 

 

—

 

Severance

 

 

1,243

 

 

 

68

 

 

 

—

 

 

 

—

 

 

 

26

 

Change in fair value of earnout liability

 

 

(1,124

)

 

 

6,706

 

 

 

(6,362

)

 

 

(6,321

)

 

 

4,177

 

Other (income) expenses

 

 

(10

)

 

 

(15

)

 

 

(2

)

 

 

2

 

 

 

22

 

AFFO

 

$

49,410

 

 

$

46,894

 

 

$

47,077

 

 

$

46,056

 

 

$

41,068

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average shares

   outstanding1

 

 

156,724

 

 

 

155,956

 

 

 

123,381

 

 

 

119,648

 

 

 

116,210

 

Net earnings per diluted share2

 

$

0.15

 

 

$

0.11

 

 

$

0.08

 

 

$

0.14

 

 

$

0.10

 

FFO per diluted share2

 

 

0.33

 

 

 

0.28

 

 

 

0.44

 

 

 

0.47

 

 

 

0.32

 

AFFO per diluted share2

 

 

0.31

 

 

 

0.30

 

 

 

0.38

 

 

 

0.38

 

 

 

0.35

 

1 Excludes 416, 341 and 216 weighted average shares of unvested restricted common stock for the three months ended March 31, 2021, December 31, 2020 and September 30, 2020, respectively.

2 Excludes $104, $85 and $46 from the numerator for the three months ended March 31, 2021, December 31, 2020 and September 30, 2020, respectively, related to dividends paid or declared on shares of unvested restricted common stock.


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

8

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

EBITDA, EBITDAre, and Other-Non GAAP Operating Measures

(unaudited, in thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

2021

 

 

December 31,

2020

 

 

September 30,

2020

 

 

June 30,

2020

 

 

March 31,

2020

 

Net income

 

$

23,960

 

 

$

17,619

 

 

$

9,711

 

 

$

17,098

 

 

$

11,848

 

Depreciation and amortization

 

 

30,713

 

 

 

30,182

 

 

 

31,363

 

 

 

39,921

 

 

 

31,219

 

Interest expense

 

 

16,108

 

 

 

17,123

 

 

 

18,511

 

 

 

19,513

 

 

 

20,991

 

Income taxes

 

 

413

 

 

 

(141

)

 

 

129

 

 

 

402

 

 

 

549

 

EBITDA

 

$

71,194

 

 

$

64,783

 

 

$

59,714

 

 

$

76,934

 

 

$

64,607

 

Provision for impairment of investment in

   rental properties

 

 

2,012

 

 

 

1,678

 

 

 

14,732

 

 

 

534

 

 

 

2,133

 

Gain on sale of real estate

 

 

(4,733

)

 

 

(5,260

)

 

 

(1,060

)

 

 

(1,046

)

 

 

(7,619

)

EBITDAre

 

$

68,473

 

 

$

61,201

 

 

$

73,386

 

 

$

76,422

 

 

$

59,121

 

Adjustment for current quarter acquisition

   activity 1

 

 

1,365

 

 

 

1,703

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjustment for current quarter disposition

   activity 2

 

 

(278

)

 

 

(318

)

 

 

(78

)

 

 

(52

)

 

 

(285

)

Adjustment to exclude non-recurring and other

   expenses (income) 3

 

 

2,100

 

 

 

182

 

 

 

1,929

 

 

 

389

 

 

 

1,205

 

Adjustment to exclude change in fair value

   of earnout liability

 

 

(1,124

)

 

 

6,706

 

 

 

(6,362

)

 

 

(6,321

)

 

 

4,177

 

Adjustment to exclude write-off of accrued

   rental income

 

 

442

 

 

 

242

 

 

 

—

 

 

 

—

 

 

 

3,993

 

Adjustment to exclude cost of debt

   extinguishments

 

 

126

 

 

 

—

 

 

 

392

 

 

 

—

 

 

 

22

 

Adjustment to exclude lease termination

   fees

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(276

)

 

 

—

 

Adjusted EBITDAre

 

$

71,104

 

 

$

69,716

 

 

$

69,267

 

 

$

70,162

 

 

$

68,233

 

Asset management fees

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,461

 

Property management fees

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,275

 

General and administrative

 

 

10,632

 

 

 

9,219

 

 

 

7,214

 

 

 

5,700

 

 

 

5,842

 

Adjusted Net Operating Income ("NOI")

 

$

81,736

 

 

$

78,935

 

 

$

76,481

 

 

$

75,862

 

 

$

77,811

 

Straight-line rental revenue, net

 

 

(4,762

)

 

 

(5,339

)

 

 

(6,947

)

 

 

(6,151

)

 

 

(5,594

)

Other amortization and non-cash charges

 

 

(737

)

 

 

(1,170

)

 

 

1,810

 

 

 

911

 

 

 

(1,133

)

Adjusted Cash NOI

 

$

76,237

 

 

$

72,426

 

 

$

71,344

 

 

$

70,622

 

 

$

71,084

 

Annualized EBITDAre

 

$

273,888

 

 

$

244,805

 

 

$

293,544

 

 

$

305,688

 

 

$

236,484

 

Annualized Adjusted EBITDAre

 

 

284,414

 

 

 

278,867

 

 

 

277,068

 

 

 

280,648

 

 

 

272,932

 

Annualized Adjusted NOI

 

 

326,944

 

 

 

315,743

 

 

 

305,924

 

 

 

303,448

 

 

 

311,244

 

Annualized Adjusted Cash NOI

 

 

304,948

 

 

 

289,704

 

 

 

285,376

 

 

 

282,488

 

 

 

284,336

 

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

2 Reflects 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 $1.2 million of severance and $0.9 million of accelerated stock-based compensation associated with the departure of executive officers in 2021, and expenses directly associated with the Internalization in 2020.

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

9

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

Lease Revenues Detail

(unaudited, in thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

2021

 

 

December 31,

2020

 

 

September 30,

2020

 

 

June 30,

2020

 

 

March 31,

2020

 

Contractual rental amounts billed for

   operating leases

 

$

73,245

 

 

$

72,558

 

 

$

69,270

 

 

$

67,342

 

 

$

72,828

 

Adjustment to recognize contractual

   operating lease billings on a straight-

   line basis

 

 

4,367

 

 

 

4,256

 

 

 

6,768

 

 

 

8,276

 

 

 

1,665

 

Variable rental amounts earned

 

 

91

 

 

 

455

 

 

 

234

 

 

 

51

 

 

 

3

 

Earned income from direct financing

   leases

 

 

730

 

 

 

756

 

 

 

757

 

 

 

855

 

 

 

987

 

Earned income from sales-type

   leases

 

 

14

 

 

 

5

 

 

 

—

 

 

 

—

 

 

 

—

 

Operating expenses billed to tenants

 

 

4,388

 

 

 

4,389

 

 

 

3,389

 

 

 

4,335

 

 

 

3,732

 

Other income from real estate

   transactions

 

 

5

 

 

 

(16

)

 

 

64

 

 

 

702

 

 

 

49

 

Adjustment to revenue recognized for

   uncollectible rental amounts billed

 

 

(142

)

 

 

(112

)

 

 

262

 

 

 

(1,190

)

 

 

(1,033

)

Total Lease revenues, net

 

$

82,698

 

 

$

82,291

 

 

$

80,744

 

 

$

80,371

 

 

$

78,231

 

 

 

 

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

10

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

Capital Structure

(unaudited, in thousands, except per share data)

 

 

EQUITY

 

 

 

 

Shares of Common Stock

 

 

145,813

 

OP Units

 

 

11,361

 

Common Stock & OP Units

 

 

157,174

 

Price Per Share / Unit at March 31, 2021

 

$

18.30

 

IMPLIED EQUITY MARKET CAPITALIZATION

 

$

2,876,276

 

% of Total Capitalization

 

 

65.5

%

DEBT

 

 

 

 

Unsecured Revolving Credit Facility - 2023

 

$

15,000

 

Unsecured Term Loan Facilities

 

 

915,000

 

Unsecured Term Loan - 2022

 

 

60,000

 

Unsecured Term Loan - 2023

 

 

265,000

 

Unsecured Term Loan - 2024

 

 

190,000

 

Unsecured Term Loan - 2026

 

 

400,000

 

Senior Unsecured Notes

 

 

475,000

 

Senior Unsecured Notes - 2027

 

 

150,000

 

Senior Unsecured Notes - 2028

 

 

225,000

 

Senior Unsecured Notes - 2030

 

 

100,000

 

Mortgage Debt - Various

 

 

106,830

 

TOTAL DEBT

 

$

1,511,830

 

% of Total Capitalization

 

 

34.5

%

% of Total Capitalization Floating Rate Debt

 

 

2.5

%

% of Total Capitalization Fixed Rate Debt

 

 

32.0

%

 

 

 

 

 

ENTERPRISE VALUE

 

 

 

 

Total Capitalization

 

$

4,388,106

 

Less: Cash and Cash Equivalents

 

 

(10,205

)

Enterprise Value

 

$

4,377,901

 

 

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

11

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

Debt Outstanding

(unaudited, in thousands)

 

Year of Maturity

 

Revolving Credit Facility

 

 

Term Loans

 

 

Senior Notes

 

 

Mortgages

 

 

Total

 

2021

 

$

—

 

 

$

—

 

 

$

—

 

 

$

17,169

 

 

$

17,169

 

2022

 

 

—

 

 

 

60,000

 

 

 

—

 

 

 

2,907

 

 

 

62,907

 

2023

 

 

15,000

 

 

 

265,000

 

 

 

—

 

 

 

7,582

 

 

 

287,582

 

2024

 

 

—

 

 

 

190,000

 

 

 

—

 

 

 

2,260

 

 

 

192,260

 

2025

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20,195

 

 

 

20,195

 

Thereafter

 

 

—

 

 

 

400,000

 

 

 

475,000

 

 

 

56,717

 

 

 

931,717

 

Total

 

$

15,000

 

 

$

915,000

 

 

$

475,000

 

 

$

106,830

 

 

$

1,511,830

 

 

 

 

Outstanding Balance

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

2020

 

 

Interest Rate

 

 

Maturity Date

Revolving Credit Facility

$

15,000

 

 

$

—

 

 

daily LIBOR+ 1.00%

 

 

Sep. 2023

2022 Unsecured Term Loan

 

 

60,000

 

 

 

60,000

 

 

one-month LIBOR + 1.00%

 

 

Feb. 2022

2023 Unsecured Term Loan

 

265,000

 

 

 

265,000

 

 

one-month LIBOR + 1.10%

 

 

Jan. 2023

2024 Unsecured Term Loan

 

190,000

 

 

 

190,000

 

 

one-month LIBOR + 1.00%

 

 

Jun. 2024

2026 Unsecured Term Loan

 

 

400,000

 

 

 

450,000

 

 

one-month LIBOR + 1.00%

 

 

Feb. 2026

Senior Notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series A

 

150,000

 

 

 

150,000

 

 

4.84%

 

 

Apr. 2027

Series B

 

225,000

 

 

 

225,000

 

 

5.09%

 

 

Jul. 2028

Series C

 

100,000

 

 

 

100,000

 

 

5.19%

 

 

Jul. 2030

 

 

 

475,000

 

 

 

475,000

 

 

 

 

 

 

 

Total

 

 

1,405,000

 

 

 

1,440,000

 

 

 

 

 

 

 

Debt issuance costs, net

 

 

(6,717

)

 

 

(6,204

)

 

 

 

 

 

 

 

 

$

1,398,283

 

 

$

1,433,796

 

 

 

 

 

 

 

 

Net Debt Metrics

(unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

2021

 

 

December 31,

2020

 

 

September 30,

2020

 

 

June 30,

2020

 

 

March 31,

2020

 

Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving Credit Facility

 

$

15,000

 

 

$

—

 

 

$

—

 

 

$

248,300

 

 

$

353,300

 

Unsecured term notes, net

 

 

1,383,283

 

 

 

1,433,796

 

 

 

1,433,495

 

 

 

1,673,092

 

 

 

1,672,587

 

Mortgages and notes payable, net

 

 

106,559

 

 

 

107,382

 

 

 

108,752

 

 

 

109,512

 

 

 

110,464

 

Debt issuance costs

 

 

6,988

 

 

 

6,489

 

 

 

6,829

 

 

 

7,268

 

 

 

7,767

 

Gross Debt

 

 

1,511,830

 

 

 

1,547,667

 

 

 

1,549,076

 

 

 

2,038,172

 

 

 

2,144,118

 

Cash and cash equivalents

 

 

(10,205

)

 

 

(100,486

)

 

 

(101,787

)

 

 

(9,241

)

 

 

(93,151

)

Restricted cash

 

 

(8,145

)

 

 

(10,242

)

 

 

(7,200

)

 

 

(601

)

 

 

(3,561

)

Net Debt

 

$

1,493,480

 

 

$

1,436,939

 

 

$

1,440,089

 

 

$

2,028,330

 

 

$

2,047,406

 

Net Debt to Annualized  EBITDAre

 

5.45x

 

 

5.87x

 

 

4.91x

 

 

6.64x

 

 

8.66x

 

Net Debt to Annualized Adjusted

   EBITDAre

 

5.25x

 

 

5.15x

 

 

5.20x

 

 

7.23x

 

 

7.50x

 

 

 

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

12

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

Covenants

(unaudited)

 

The following is a summary of key financial covenants for the Company’s unsecured credit facility and unsecured term loans and senior notes. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of March 31, 2021, the Company believes it is in compliance with the covenants.

 

Covenants

 

Required

 

Revolving Credit Facility and Unsecured Term Loans

 

 

Senior Notes

 

Leverage ratio

 

≤ 0.60 to 1.00

 

 

0.35

 

 

 

0.36

 

Secured indebtedness ratio

 

≤ 0.40 to 1.00

 

 

0.03

 

 

 

0.03

 

Unencumbered coverage ratio

 

≥ 1.75 to 1.00

 

 

6.87

 

 

Not Applicable

 

Fixed charge coverage ratio

 

≥ 1.50 to 1.00

 

 

3.67

 

 

 

3.67

 

Total unsecured indebtedness to total

   unencumbered eligible property value

 

≤ 0.60 to 1.00

 

 

0.36

 

 

 

0.37

 

Dividends and other restricted payments

 

Only applicable in case of default

 

Not Applicable

 

 

Not Applicable

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

13

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

Debt Maturities and Interest Rate Exposure

(unaudited, dollars in millions)

Debt Maturities

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

 

Interest Rate Exposure

The Company uses interest rate swaps, fixed-rate private placement notes, and fixed-rate mortgages to mitigate the impact of interest rate variability.

 

Interest rate exposure not inclusive of floating rate debt, as borrowings are short-term in nature.

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

14

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

Portfolio Activity

Acquisitions

(unaudited, square feet and dollars in thousands)

The following table summarizes the Company’s property acquisition activity during 2021.

 

Q1 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Type

 

Number of Properties

 

 

Square Feet ('000s)

 

 

Weighted Average Lease Term (years)

 

 

Acquisition Price ($'000s)

 

Retail

 

 

24

 

 

 

178

 

 

 

16.3

 

 

$

68,158

 

Healthcare

 

 

4

 

 

 

51

 

 

 

11.5

 

 

 

18,983

 

Restaurant 1

 

 

—

 

 

 

—

 

 

 

16.8

 

 

 

181

 

Total Properties

 

 

28

 

 

 

229

 

 

 

15.3

 

 

$

87,322

 

Weighted average initial cash cap rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.4

%

1 Acquisition of additional land to an existing property.

Dispositions

(unaudited, square feet and dollars in thousands)

The following table summarizes the Company’s property disposition activity during 2021.

 

Q1 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Type

 

Number of Properties

 

 

Square Feet ('000s)

 

 

Acquisition Price ($'000s)

 

 

Disposition Price ($'000s)

 

 

Net Book Value ($'000s)

 

 

Cash Cap Rate

 

Healthcare

 

 

5

 

 

 

31

 

 

 

12,420

 

 

 

14,689

 

 

$

10,773

 

 

 

7.4

%

Restaurant

 

 

3

 

 

 

14

 

 

 

6,965

 

 

 

8,181

 

 

 

6,599

 

 

 

6.4

%

Total Properties

 

 

8

 

 

 

45

 

 

$

19,385

 

 

$

22,870

 

 

$

17,373

 

 

 

7.0

%


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

15

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

Portfolio at a Glance: Key Metrics

 

Properties

661

 

States

41

 

Canada

1

 

Total Rentable Sq. Footage

28.4M

 

Tenants

185

 

Brands

171

 

Industries

55

 

Occupancy (based on SF)

99.7%

 

Top Ten Tenant Concentration

18.3%

 

Top Twenty Tenant Concentration

31.0%

 

Investment Grade (tenant/guarantor)

17.3%

 

Financial Reporting Coverage1

95.2%

 

Rent Coverage Ratio2

3.1x

 

Weighted Average Annual Rent Increases

2.1%

 

Weighted Average Remaining Lease Term

10.6 years

 

 

1 Includes 7.1% related to tenants not required to provide financial information under the terms of our lease, but whose financial statements are available publicly.

2 Represents rent coverage ratio for Restaurants property type only.

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

16

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

Diversification: Tenants & Brands

(unaudited)

 

Top 20 Tenants

Tenant

 

Property Type

 

# Properties

 

 

ABR

($'000s)

 

 

ABR as a % of Total Portfolio

 

 

Square Feet ('000s)

 

 

SF as a % of Total Portfolio

 

Red Lobster Hospitality & Red Lobster

   Restaurants LLC

 

Casual Dining

 

 

24

 

 

$

7,306

 

 

 

2.4

%

 

 

196

 

 

 

0.7

%

Jack's Family Restaurants LP

 

Quick Service Restaurants

 

 

43

 

 

 

7,026

 

 

 

2.3

%

 

 

147

 

 

 

0.5

%

Axcelis Technologies, Inc.

 

Flex and R&D

 

 

1

 

 

 

5,859

 

 

 

1.9

%

 

 

417

 

 

 

1.5

%

Hensley & Company

 

Distribution & Warehouse

 

 

3

 

 

 

5,756

 

 

 

1.9

%

 

 

577

 

 

 

2.0

%

Outback Steakhouse of Florida LLC

 

Casual Dining

 

 

22

 

 

 

5,192

 

 

 

1.7

%

 

 

140

 

 

 

0.5

%

BluePearl Holdings, LLC

 

Animal Health Services

 

 

12

 

 

 

5,137

 

 

 

1.7

%

 

 

154

 

 

 

0.5

%

Krispy Kreme Doughnut Corporation

 

Quick Service Restaurants/

Food Processing

 

 

27

 

 

 

5,034

 

 

 

1.7

%

 

 

156

 

 

 

0.6

%

Big Tex Trailer Manufacturing, Inc.

 

Automotive/Distribution &

Warehouse/Manufacturing/ Corporate Headquarters

 

 

17

 

 

 

4,860

 

 

 

1.6

%

 

 

1,302

 

 

 

4.6

%

Siemens Medical Solutions USA, Inc. &

   Siemens Corporation

 

Manufacturing/Flex

and R&D

 

 

2

 

 

 

4,718

 

 

 

1.6

%

 

 

545

 

 

 

1.9

%

Nestle' Dreyer's Ice Cream Company

 

Cold Storage

 

 

1

 

 

 

4,409

 

 

 

1.5

%

 

 

310

 

 

 

1.1

%

Total Top 10 Tenants

 

 

 

 

152

 

 

$

55,297

 

 

 

18.3

%

 

 

3,944

 

 

 

13.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arkansas Surgical Hospital

 

Surgical

 

 

1

 

 

$

4,260

 

 

 

1.4

%

 

 

129

 

 

 

0.4

%

Nationwide Mutual Insurance Company

 

Strategic Operations

 

 

2

 

 

 

4,165

 

 

 

1.4

%

 

 

407

 

 

 

1.4

%

American Signature, Inc.

 

Home Furnishings

 

 

6

 

 

 

4,142

 

 

 

1.4

%

 

 

474

 

 

 

1.7

%

Cascade Aerospace Inc.

 

Manufacturing

 

 

1

 

 

 

4,122

 

 

 

1.4

%

 

 

231

 

 

 

0.8

%

Tractor Supply Company

 

General Merchandise

 

 

15

 

 

 

3,872

 

 

 

1.3

%

 

 

300

 

 

 

1.1

%

Aventiv Technologies, LLC

 

Corporate Headquarters

 

 

1

 

 

 

3,819

 

 

 

1.2

%

 

 

154

 

 

 

0.5

%

Fresh Express Incorporated

 

Food Processing

 

 

1

 

 

 

3,819

 

 

 

1.2

%

 

 

335

 

 

 

1.2

%

Bob Evans Restaurants, LLC

 

Casual Dining

 

 

22

 

 

 

3,566

 

 

 

1.2

%

 

 

116

 

 

 

0.4

%

Zips Car Wash, LLC

 

Automotive

 

 

14

 

 

 

3,292

 

 

 

1.1

%

 

 

57

 

 

 

0.2

%

Centene Management Company, LLC

 

Strategic Operations

 

 

1

 

 

 

3,267

 

 

 

1.1

%

 

 

220

 

 

 

0.8

%

Total Top 20 Tenants

 

 

 

 

216

 

 

$

93,621

 

 

 

31.0

%

 

 

6,367

 

 

 

22.4

%

 

 

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

17

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

Top 20 Brands

(unaudited)

Brand

 

Property Type

 

# Properties

 

 

ABR

($'000s)

 

 

ABR as a % of Total Portfolio

 

 

Square Feet ('000s)

 

 

SF as a % of Total Portfolio

 

Red Lobster

 

Casual Dining

 

 

24

 

 

$

7,306

 

 

 

2.4

%

 

 

196

 

 

 

0.7

%

Jack's Family Restaurants

 

Quick Service Restaurants

 

 

43

 

 

 

7,026

 

 

 

2.3

%

 

 

147

 

 

 

0.5

%

Axcelis

 

Flex and R&D

 

 

1

 

 

 

5,859

 

 

 

1.9

%

 

 

417

 

 

 

1.5

%

Hensley

 

Distribution & Warehouse

 

 

3

 

 

 

5,756

 

 

 

1.9

%

 

 

577

 

 

 

2.0

%

Bob Evans Farms

 

Casual Dining/Food

Processing

 

 

23

 

 

 

5,449

 

 

 

1.8

%

 

 

292

 

 

 

1.0

%

Wendy's

 

Quick Service Restaurants

 

 

38

 

 

 

5,433

 

 

 

1.8

%

 

 

113

 

 

 

0.4

%

BluePearl Veterinary Partners

 

Animal Health Services

 

 

12

 

 

 

5,137

 

 

 

1.7

%

 

 

154

 

 

 

0.5

%

Krispy Kreme

 

Quick Service Restaurants/

Food Processing

 

 

27

 

 

 

5,034

 

 

 

1.7

%

 

 

156

 

 

 

0.6

%

Big Tex Trailers

 

Automotive/Distribution &

Warehouse/Manufacturing/

Corporate Headquarters

 

 

17

 

 

 

4,860

 

 

 

1.6

%

 

 

1,302

 

 

 

4.6

%

Siemens

 

Manufacturing/Flex

and R&D

 

 

2

 

 

 

4,718

 

 

 

1.6

%

 

 

545

 

 

 

1.9

%

Total Top 10 Brands

 

 

 

 

190

 

 

$

56,578

 

 

 

18.7

%

 

 

3,899

 

 

 

13.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outback Steakhouse

 

Casual Dining

 

 

20

 

 

$

4,492

 

 

 

1.5

%

 

 

126

 

 

 

0.5

%

Nestle'

 

Cold Storage

 

 

1

 

 

 

4,409

 

 

 

1.5

%

 

 

310

 

 

 

1.1

%

Arkansas Surgical Hospital

 

Surgical

 

 

1

 

 

 

4,260

 

 

 

1.4

%

 

 

129

 

 

 

0.4

%

Taco Bell

 

Quick Service Restaurants

 

 

32

 

 

 

4,226

 

 

 

1.4

%

 

 

82

 

 

 

0.3

%

Nationwide Mutual Insurance Co.

 

Strategic Operations

 

 

2

 

 

 

4,165

 

 

 

1.4

%

 

 

407

 

 

 

1.4

%

Value City Furniture

 

Home Furnishings

 

 

6

 

 

 

4,142

 

 

 

1.4

%

 

 

474

 

 

 

1.7

%

Cascade Aerospace

 

Manufacturing

 

 

1

 

 

 

4,122

 

 

 

1.4

%

 

 

231

 

 

 

0.8

%

Tractor Supply Co.

 

General Merchandise

 

 

15

 

 

 

3,872

 

 

 

1.3

%

 

 

300

 

 

 

1.1

%

Securus Technologies

 

Corporate Headquarters

 

 

1

 

 

 

3,819

 

 

 

1.2

%

 

 

154

 

 

 

0.5

%

Chiquita

 

Food Processing

 

 

1

 

 

 

3,819

 

 

 

1.2

%

 

 

335

 

 

 

1.2

%

Total Top 20 Brands

 

 

 

 

270

 

 

$

97,904

 

 

 

32.4

%

 

 

6,447

 

 

 

22.7

%

 

 

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

18

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

Diversification: Property Type

(unaudited, rent percentages based on ABR)     

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

19

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

Diversification: Property Type (continued)

(unaudited)

Property Type

 

# Properties

 

 

ABR

($'000s)

 

 

ABR as a % of Total Portfolio

 

 

Square Feet ('000s)

 

 

SF as a % of Total Portfolio

 

Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Manufacturing

 

 

56

 

 

$

42,455

 

 

 

14.0

%

 

 

7,732

 

 

 

27.3

%

Distribution & Warehouse

 

 

31

 

 

 

40,250

 

 

 

13.3

%

 

 

7,414

 

 

 

26.1

%

Food Processing

 

 

14

 

 

 

18,386

 

 

 

6.1

%

 

 

2,132

 

 

 

7.5

%

Flex and R&D

 

 

7

 

 

 

16,934

 

 

 

5.6

%

 

 

1,457

 

 

 

5.1

%

Cold Storage

 

 

4

 

 

 

12,578

 

 

 

4.2

%

 

 

933

 

 

 

3.3

%

Services

 

 

18

 

 

 

7,168

 

 

 

2.4

%

 

 

429

 

 

 

1.5

%

Industrial Total

 

 

130

 

 

 

137,771

 

 

 

45.6

%

 

 

20,097

 

 

 

70.8

%

Healthcare

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clinical

 

 

50

 

 

 

24,958

 

 

 

8.3

%

 

 

1,062

 

 

 

3.7

%

Surgical

 

 

11

 

 

 

9,166

 

 

 

3.0

%

 

 

306

 

 

 

1.1

%

Animal Health Services

 

 

20

 

 

 

8,209

 

 

 

2.7

%

 

 

314

 

 

 

1.1

%

Life Science

 

 

9

 

 

 

7,994

 

 

 

2.6

%

 

 

550

 

 

 

1.9

%

Healthcare Services

 

 

26

 

 

 

7,520

 

 

 

2.5

%

 

 

302

 

 

 

1.1

%

Healthcare Total

 

 

116

 

 

 

57,847

 

 

 

19.1

%

 

 

2,534

 

 

 

8.9

%

Restaurant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quick Service Restaurants

 

 

156

 

 

 

25,495

 

 

 

8.4

%

 

 

530

 

 

 

1.9

%

Casual Dining

 

 

88

 

 

 

19,858

 

 

 

6.6

%

 

 

563

 

 

 

2.0

%

Restaurant Total

 

 

244

 

 

 

45,353

 

 

 

15.0

%

 

 

1,093

 

 

 

3.9

%

Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automotive

 

 

68

 

 

 

12,767

 

 

 

4.2

%

 

 

844

 

 

 

3.0

%

General Merchandise

 

 

71

 

 

 

12,215

 

 

 

4.1

%

 

 

855

 

 

 

3.0

%

Home Furnishings

 

 

15

 

 

 

6,932

 

 

 

2.3

%

 

 

860

 

 

 

3.0

%

Retail Total

 

 

154

 

 

 

31,914

 

 

 

10.6

%

 

 

2,559

 

 

 

9.0

%

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Strategic Operations

 

 

7

 

 

 

13,639

 

 

 

4.5

%

 

 

1,021

 

 

 

3.6

%

Corporate Headquarters

 

 

6

 

 

 

10,016

 

 

 

3.3

%

 

 

671

 

 

 

2.4

%

Call Center

 

 

4

 

 

 

5,716

 

 

 

1.9

%

 

 

392

 

 

 

1.4

%

Office Total

 

 

17

 

 

 

29,371

 

 

 

9.7

%

 

 

2,084

 

 

 

7.4

%

Total

 

 

661

 

 

$

302,256

 

 

 

100.0

%

 

 

28,367

 

 

 

100.0

%

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

20

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

Key Statistics by Property Type

 

Industrial

 

 

 

 

Number of properties

 

 

130

 

Square feet (000s)

 

 

20,097

 

Weighted average lease term (years)

 

 

10.4

 

Weighted average annual rent escalation

 

 

2.0

%

 

 

 

 

 

Healthcare

 

 

 

 

Number of properties

 

 

116

 

Square feet (000s)

 

 

2,534

 

Weighted average lease term (years)

 

 

8.2

 

Weighted average annual rent escalation

 

 

2.3

%

 

 

 

 

 

Restaurants

 

 

 

 

Number of properties

 

 

244

 

Square feet (000s)

 

 

1,093

 

Weighted average lease term (years)

 

 

15.7

 

Weighted average annual rent escalation

 

 

1.9

%

 

 

 

 

 

Office

 

 

 

 

Number of properties

 

 

17

 

Square feet (000s)

 

 

2,084

 

Weighted average lease term (years)

 

 

7.2

 

Weighted average annual rent escalation

 

 

2.4

%

 

 

 

 

 

Retail

 

 

 

 

Number of properties

 

 

154

 

Square feet (000s)

 

 

2,559

 

Weighted average lease term (years)

 

 

11.3

 

Weighted average annual rent escalation

 

 

1.7

%


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

21

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

Diversification: Tenant Industry
(unaudited)

Industry

 

# Properties

 

 

ABR

($'000s)

 

 

ABR as a % of Total Portfolio

 

 

Square Feet ('000s)

 

 

SF as a % of Total Portfolio

 

Restaurants

 

 

244

 

 

$

46,018

 

 

 

15.2

%

 

 

1,118

 

 

 

4.0

%

Healthcare Facilities

 

 

88

 

 

 

44,345

 

 

 

14.7

%

 

 

1,738

 

 

 

6.1

%

Food Distributors

 

 

7

 

 

 

12,907

 

 

 

4.3

%

 

 

1,556

 

 

 

5.5

%

Auto Parts & Equipment

 

 

39

 

 

 

12,369

 

 

 

4.1

%

 

 

2,387

 

 

 

8.4

%

Specialized Consumer Services

 

 

47

 

 

 

11,790

 

 

 

3.9

%

 

 

720

 

 

 

2.5

%

Packaged Foods & Meats

 

 

6

 

 

 

11,371

 

 

 

3.7

%

 

 

1,130

 

 

 

4.0

%

Metal & Glass Containers

 

 

8

 

 

 

9,686

 

 

 

3.2

%

 

 

2,206

 

 

 

7.8

%

Healthcare Services

 

 

19

 

 

 

9,152

 

 

 

3.0

%

 

 

522

 

 

 

1.8

%

Home Furnishing Retail

 

 

16

 

 

 

8,711

 

 

 

2.9

%

 

 

1,149

 

 

 

4.1

%

Aerospace & Defense

 

 

6

 

 

 

7,760

 

 

 

2.6

%

 

 

921

 

 

 

3.3

%

Distributors

 

 

12

 

 

 

6,909

 

 

 

2.3

%

 

 

966

 

 

 

3.4

%

Specialty Stores

 

 

17

 

 

 

6,913

 

 

 

2.3

%

 

 

888

 

 

 

3.1

%

Electronic Components

 

 

2

 

 

 

6,658

 

 

 

2.2

%

 

 

466

 

 

 

1.7

%

Air Freight & Logistics

 

 

3

 

 

 

6,494

 

 

 

2.1

%

 

 

436

 

 

 

1.5

%

Industrial Machinery

 

 

16

 

 

 

6,021

 

 

 

2.0

%

 

 

1,174

 

 

 

4.1

%

Other (40 industries)

 

 

125

 

 

 

95,152

 

 

 

31.5

%

 

 

10,894

 

 

 

38.4

%

Untenanted properties

 

 

6

 

 

 

—

 

 

 

—

 

 

 

96

 

 

 

0.3

%

Total

 

 

661

 

 

$

302,256

 

 

 

100.0

%

 

 

28,367

 

 

 

100.0

%


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

22

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

Diversification: Geography

(unaudited, rent percentages based on ABR)

 

 

State

 

# Properties

 

 

ABR

($'000s)

 

 

ABR as a % of Total Portfolio

 

 

Square Feet ('000s)

 

 

SF as a % of Total Portfolio

 

 

 

State

 

# Properties

 

 

 

 

ABR

($'000s)

 

 

 

 

ABR as a % of Total Portfolio

 

 

 

 

Square Feet ('000s)

 

 

 

 

SF as a % of Total Portfolio

 

TX

 

 

54

 

 

$

30,771

 

 

 

10.2

%

 

 

3,207

 

 

 

11.3

%

 

 

VA

 

 

13

 

 

 

 

$

4,368

 

 

 

 

 

1.4

%

 

 

 

 

110

 

 

 

 

 

0.4

%

IL

 

 

25

 

 

$

19,339

 

 

 

6.4

%

 

 

1,976

 

 

 

7.0

%

 

 

WA

 

 

15

 

 

 

 

$

4,155

 

 

 

 

 

1.4

%

 

 

 

 

150

 

 

 

 

 

0.5

%

CA

 

 

11

 

 

$

15,735

 

 

 

5.2

%

 

 

1,554

 

 

 

5.5

%

 

 

MO

 

 

9

 

 

 

 

$

3,882

 

 

 

 

 

1.3

%

 

 

 

 

733

 

 

 

 

 

2.6

%

FL

 

 

46

 

 

$

15,663

 

 

 

5.2

%

 

 

801

 

 

 

2.8

%

 

 

KY

 

 

17

 

 

 

 

$

3,473

 

 

 

 

 

1.2

%

 

 

 

 

167

 

 

 

 

 

0.6

%

WI

 

 

32

 

 

$

15,655

 

 

 

5.2

%

 

 

1,611

 

 

 

5.7

%

 

 

LA

 

 

3

 

 

 

 

$

3,128

 

 

 

 

 

1.0

%

 

 

 

 

175

 

 

 

 

 

0.6

%

MI

 

 

35

 

 

$

14,760

 

 

 

4.9

%

 

 

1,439

 

 

 

5.1

%

 

 

NE

 

 

6

 

 

 

 

$

2,959

 

 

 

 

 

1.0

%

 

 

 

 

509

 

 

 

 

 

1.8

%

OH

 

 

35

 

 

$

14,125

 

 

 

4.7

%

 

 

1,369

 

 

 

4.8

%

 

 

MD

 

 

4

 

 

 

 

$

2,882

 

 

 

 

 

1.0

%

 

 

 

 

293

 

 

 

 

 

1.0

%

IN

 

 

30

 

 

$

12,830

 

 

 

4.2

%

 

 

1,765

 

 

 

6.2

%

 

 

MS

 

 

8

 

 

 

 

$

2,736

 

 

 

 

 

0.9

%

 

 

 

 

334

 

 

 

 

 

1.2

%

NC

 

 

34

 

 

$

12,134

 

 

 

4.0

%

 

 

1,245

 

 

 

4.4

%

 

 

NM

 

 

8

 

 

 

 

$

2,731

 

 

 

 

 

0.9

%

 

 

 

 

97

 

 

 

 

 

0.3

%

MN

 

 

20

 

 

$

11,501

 

 

 

3.8

%

 

 

1,757

 

 

 

6.2

%

 

 

IA

 

 

4

 

 

 

 

$

2,704

 

 

 

 

 

0.9

%

 

 

 

 

622

 

 

 

 

 

2.2

%

NY

 

 

26

 

 

$

10,323

 

 

 

3.4

%

 

 

680

 

 

 

2.4

%

 

 

SC

 

 

13

 

 

 

 

$

2,466

 

 

 

 

 

0.8

%

 

 

 

 

308

 

 

 

 

 

1.1

%

TN

 

 

42

 

 

$

10,225

 

 

 

3.4

%

 

 

390

 

 

 

1.4

%

 

 

UT

 

 

3

 

 

 

 

$

2,328

 

 

 

 

 

0.8

%

 

 

 

 

280

 

 

 

 

 

1.0

%

MA

 

 

4

 

 

$

9,994

 

 

 

3.3

%

 

 

1,009

 

 

 

3.5

%

 

 

CT

 

 

2

 

 

 

 

$

1,653

 

 

 

 

 

0.6

%

 

 

 

 

55

 

 

 

 

 

0.2

%

PA

 

 

16

 

 

$

9,785

 

 

 

3.2

%

 

 

1,146

 

 

 

4.0

%

 

 

WV

 

 

8

 

 

 

 

$

1,642

 

 

 

 

 

0.5

%

 

 

 

 

36

 

 

 

 

 

0.1

%

AL

 

 

50

 

 

$

8,761

 

 

 

2.9

%

 

 

206

 

 

 

0.7

%

 

 

MT

 

 

7

 

 

 

 

$

1,544

 

 

 

 

 

0.5

%

 

 

 

 

43

 

 

 

 

 

0.2

%

AZ

 

 

8

 

 

$

8,553

 

 

 

2.8

%

 

 

761

 

 

 

2.7

%

 

 

CO

 

 

3

 

 

 

 

$

1,434

 

 

 

 

 

0.5

%

 

 

 

 

94

 

 

 

 

 

0.3

%

AR

 

 

11

 

 

$

7,380

 

 

 

2.4

%

 

 

282

 

 

 

1.0

%

 

 

NV

 

 

2

 

 

 

 

$

1,311

 

 

 

 

 

0.4

%

 

 

 

 

81

 

 

 

 

 

0.3

%

GA

 

 

19

 

 

$

6,554

 

 

 

2.2

%

 

 

976

 

 

 

3.4

%

 

 

ND

 

 

2

 

 

 

 

$

933

 

 

 

 

 

0.3

%

 

 

 

 

28

 

 

 

 

 

0.1

%

OK

 

 

18

 

 

$

6,440

 

 

 

2.1

%

 

 

786

 

 

 

2.8

%

 

 

DE

 

 

3

 

 

 

 

$

663

 

 

 

 

 

0.2

%

 

 

 

 

35

 

 

 

 

 

0.1

%

KS

 

 

10

 

 

$

5,407

 

 

 

1.8

%

 

 

639

 

 

 

2.3

%

 

 

WY

 

 

1

 

 

 

 

$

307

 

 

 

 

 

0.1

%

 

 

 

 

21

 

 

 

 

 

0.1

%

NJ

 

 

3

 

 

$

4,900

 

 

 

1.6

%

 

 

366

 

 

 

1.3

%

 

 

Total US

 

 

660

 

 

 

 

$

298,134

 

 

 

 

 

98.6

%

 

 

 

 

28,136

 

 

 

 

 

99.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Canada

 

 

1

 

 

 

 

 

4,122

 

 

 

 

 

1.4

%

 

 

 

 

231

 

 

 

 

 

0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grand Total

 

 

661

 

 

 

 

$

302,256

 

 

 

 

 

100.0

%

 

 

 

 

28,367

 

 

 

 

 

100.0

%


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

23

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

Lease Expirations

(unaudited, rent percentages based on ABR)

 

WEIGHTED AVERAGE
REMAINING LEASE TERM: 10.6 YRS

 

 

Expiration Year

 

# Properties

 

 

ABR

($'000s)

 

 

ABR as a % of Total Portfolio

 

 

Square Feet ('000s)

 

 

SF as a % of Total Portfolio

 

2021

 

 

4

 

 

$

964

 

 

 

0.3

%

 

 

46

 

 

 

0.2

%

2022

 

 

3

 

 

 

2,409

 

 

 

0.8

%

 

 

86

 

 

 

0.3

%

2023

 

 

6

 

 

 

4,841

 

 

 

1.6

%

 

 

515

 

 

 

1.8

%

2024

 

 

11

 

 

 

13,662

 

 

 

4.5

%

 

 

1,689

 

 

 

6.0

%

2025

 

 

19

 

 

 

7,833

 

 

 

2.6

%

 

 

682

 

 

 

2.4

%

2026

 

 

34

 

 

 

18,586

 

 

 

6.1

%

 

 

1,404

 

 

 

4.9

%

2027

 

 

27

 

 

 

22,917

 

 

 

7.6

%

 

 

2,010

 

 

 

7.1

%

2028

 

 

35

 

 

 

27,171

 

 

 

9.0

%

 

 

2,736

 

 

 

9.6

%

2029

 

 

61

 

 

 

19,357

 

 

 

6.4

%

 

 

2,538

 

 

 

8.9

%

2030

 

 

86

 

 

 

49,088

 

 

 

16.2

%

 

 

4,927

 

 

 

17.4

%

2031

 

 

21

 

 

 

7,145

 

 

 

2.4

%

 

 

725

 

 

 

2.6

%

2032

 

 

44

 

 

 

26,225

 

 

 

8.7

%

 

 

3,014

 

 

 

10.6

%

2033

 

 

41

 

 

 

16,385

 

 

 

5.4

%

 

 

1,693

 

 

 

6.0

%

2034

 

 

31

 

 

 

5,479

 

 

 

1.8

%

 

 

361

 

 

 

1.3

%

2035

 

 

14

 

 

 

10,498

 

 

 

3.5

%

 

 

1,471

 

 

 

5.2

%

2036

 

 

71

 

 

 

16,914

 

 

 

5.6

%

 

 

969

 

 

 

3.4

%

2037

 

 

24

 

 

 

17,256

 

 

 

5.7

%

 

 

1,367

 

 

 

4.8

%

2038

 

 

33

 

 

 

6,805

 

 

 

2.3

%

 

 

306

 

 

 

1.1

%

2039

 

 

12

 

 

 

8,988

 

 

 

3.0

%

 

 

933

 

 

 

3.3

%

2040

 

 

41

 

 

 

6,887

 

 

 

2.3

%

 

 

347

 

 

 

1.2

%

Thereafter

 

 

37

 

 

 

12,846

 

 

 

4.2

%

 

 

452

 

 

 

1.6

%

Untenanted properties

 

 

6

 

 

 

—

 

 

 

—

 

 

 

96

 

 

 

0.3

%

Total

 

 

661

 

 

$

302,256

 

 

 

100.0

%

 

 

28,367

 

 

 

100.0

%

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

24

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

Portfolio Occupancy

(unaudited, based on square feet)

 

 

 


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

25

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

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 costs incurred at the corporate level, including asset management, property management, and general and administrative expenses. The asset and property management expenses relate to historical fees paid to our former third-party manager, which are no longer incurred as a result of the internalization of management functions. 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.

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 the short-term rent deferrals and abatements agreed to as a result of tenant requests for rent relief related to the COVID-19 pandemic, and adjusted to remove rent from properties sold during the month and to include a full month of contractual cash rent for properties acquired during the last month.

Cash Cap Rate: Cash Cap Rate represents the estimated first year cash yield to be generated on a real estate investment property, 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.

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 acquisitions and dispositions for the quarter as if such acquisitions and dispositions had occurred as of 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 or the change in fair value of our earnout liability, 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. 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) and Adjusted Funds From Operations (AFFO): FFO and AFFO are non-GAAP measures. We believe the use of 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 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 FFO in accordance with the standards established by Nareit, which defines FFO as GAAP net income or loss adjusted to exclude net gains (losses) from sales of certain depreciated real estate assets, depreciation and amortization expense from real estate assets, gains and losses from change in control, and impairment charges related to certain previously depreciated real estate assets. To derive AFFO, we modify the Nareit computation of FFO to include other adjustments to GAAP net income related to certain non-cash and non-recurring revenues and expenses, including straight-line rents, the change in fair value of our earnout liability, cost of debt extinguishments, 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, realized gains or losses on foreign currency transactions, internalization expenses, stock based compensation, severance, extraordinary items, and other specified non-cash items. We believe excluding such items assists management and investors in distinguishing whether changes in our operations are due to growth or decline of operations at our properties or from other factors.


 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

26

 

Q1 2021 SUPPLEMENTAL INFORMATION

 

 

 

 

 

Definitions and Explanations (continued)

Gross Debt: We define Gross Debt as total debt plus deferred financing costs.

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” 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.

 

BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2021 Broadstone Net Lease, Inc. All rights reserved.

27