EX-99

EX-99 3 bnl-ex99_2.htm EX-99.2 EX-99

Exhibit 99.2

Q4 2022 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

Table of Contents


Section	Page
About the Data	3
Company Overview	4
Quarterly Financial Summary	5
Balance Sheet	6
Income Statement Summary	7
Funds From Operations (FFO), Core Funds From Operations (Core FFO), and Adjusted Funds From Operations (AFFO)	8
EBITDA, EBITDAre, and Other Non-GAAP Operating Measures	9
Lease Revenues Detail	10
Capital Structure	11
Equity Rollforward	12
Debt Outstanding	13
Net Debt Metrics	14
Covenants	15
Debt Maturities	16
Investment Activity	17
Dispositions	18
Portfolio at a Glance: Key Metrics	19
Diversification: Tenants and Brands	20-21
Diversification: Property Type	22-23
Key Statistics by Property Type	24
Diversification: Tenant Industry	25
Diversification: Geography	26
Lease Expirations	27
Portfolio Occupancy	28
Definitions and Explanations	29-30

About the Data

This data and other information described herein are as of and for the three months ended December 31, 2022 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 Annual Report on Form 10-K for the year ended December 31, 2022, including the financial statements and the management's discussion and analysis of financial condition and results of operations sections.

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 general economic conditions, including but not limited to increases in the rate of inflation and/or interest rates, local real estate conditions, tenant financial health, and property acquisitions and the timing of these investments and 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.

Company Overview

As of February 22, 2023

Broadstone Net Lease, Inc. (NYSE:BNL) (the "Company," "BNL," "us," "our" and "we") is a real estate investment trust ("REIT") 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, retail, and office 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 core business operations rather than real estate ownership.

Executive Team
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 and Chief Operating Officer
John D. Callan, Jr.
Senior Vice President, General Counsel, and Secretary
Michael B. Caruso
Senior Vice President, Corporate Finance & Investor Relations
Timothy D. Dieffenbacher 
Senior Vice President, Chief Accounting Officer, and Treasurer
Kevin M. Fennell
Senior Vice President, Capital Markets & Credit Risk
Laurier James Lessard, Jr.
Senior Vice President, Asset Management
Jennie L. O'Brien 
Senior Vice President, Accounting & Controller
Roderick A. Pickney
Senior Vice President, Acquisitions
Molly Kelly Wiegel
Senior Vice President, Human Resources
Andrea T. Wright
Senior Vice President, Property Management
 

Board of Directors
Laurie A. Hawkes
Chairman of the Board
Christopher J. Czarnecki
Chief Executive Officer and President 
Denise Brooks-Williams
Michael A. Coke
Jessica Duran
Laura Felice
David M. Jacobstein
Shekar Narasimhan
Geoffrey H. Rosenberger
James H. Waters
 
 

Company Contact Information
Michael Caruso
SVP, Corporate Finance & Investor Relations
michael.caruso@broadstone.com
585-402-7842
 
  
Transfer Agent
Computershare Trust Company, N.A.
150 Royall Street
Canton, Massachusetts 02021
800-736-3001

Quarterly Financial Summary

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


	Q4 2022			Q3 2022			Q2 2022			Q1 2022			Q4 2021
Financial Summary
Investment in rental property	$	5,035,846		$	4,775,460		$	4,594,776		$	4,431,929		$	4,234,544
Less accumulated depreciation		(533,965	)		(505,456	)		(479,952	)		(454,122	)		(430,141	)
Investment in rental property, net		4,501,881			4,270,004			4,114,824			3,977,807			3,804,403
Cash and cash equivalents		21,789			75,912			16,813			54,103			21,669
Restricted cash		38,251			6,449			12,163			11,444			6,100
Total assets		5,457,609			5,239,192			4,979,442			4,852,520			4,618,648
Unsecured revolving credit facility		197,322			219,537			320,657			266,118			102,000
Mortgages, net		86,602			94,753			95,453			96,141			96,846
Unsecured term loans, net		894,692			894,378			587,098			586,884			646,671
Senior unsecured notes, net		844,555			844,367			844,178			843,990			843,801
Total liabilities		2,195,104			2,231,045			2,012,800			1,961,200			1,877,510
Total Broadstone Net Lease, Inc. stockholders' equity		3,092,918			2,840,692			2,798,690			2,724,641			2,577,292
Total equity (book value)		3,262,505			3,008,147			2,966,642			2,891,320			2,741,138

Revenues		112,135			103,524			98,013			93,841			92,642
General and administrative - other		7,814			8,439			7,907			7,899			7,501
Stock based compensation		1,503			1,503			1,381			929			1,025
General and administrative		9,317			9,942			9,288			8,828			8,526
Total operating expenses		61,320			59,133			50,875			48,162			46,649
Interest expense		23,773			20,095			17,888			16,896			16,997
Net income		36,773			28,709			35,552			28,441			32,226
Net earnings per common share, diluted	$	0.20		$	0.16		$	0.20		$	0.16		$	0.19

FFO		71,718			72,169			68,340			61,504			62,152
FFO per share, diluted	$	0.39		$	0.39		$	0.38		$	0.35		$	0.36
Core FFO		70,527			66,677			65,986			64,076			62,232
Core FFO per share, diluted	$	0.38		$	0.36		$	0.37		$	0.37		$	0.36
AFFO		65,585			63,386			62,804			60,401			58,692
AFFO per share, diluted	$	0.36		$	0.35		$	0.35		$	0.35		$	0.34

Net cash provided by operating activities		60,440			77,515			58,855			59,104			57,619
Net cash used in investing activities		(274,485	)		(205,187	)		(172,293	)		(207,678	)		(133,925	)
Net cash provided by financing activities		191,724			181,057			76,867			186,352			83,998
Distributions declared		45,824			46,242			49,507			48,115			45,857
Distributions declared per diluted share	$	0.275		$	0.270		$	0.270		$	0.265		$	0.265

Balance Sheet

(unaudited, in thousands)


	December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021
Assets
Accounted for using the operating method:
Land	$	768,667		$	755,206		$	731,208		$	709,962		$	655,374
Land improvements		340,385			331,858			320,513			300,300			295,329
Buildings and improvements		3,888,756			3,650,275			3,503,478			3,381,990			3,242,618
Equipment		10,422			10,422			10,422			10,422			11,870
Total accounted for using the operating method		5,008,230			4,747,761			4,565,621			4,402,674			4,205,191
Less accumulated depreciation		(533,965	)		(505,456	)		(479,952	)		(454,122	)		(430,141	)
Accounted for using the operating method, net		4,474,265			4,242,305			4,085,669			3,948,552			3,775,050
Accounted for using the direct financing method		27,045			27,128			28,584			28,684			28,782
Accounted for using the sales-type method		571			571			571			571			571
Investment in rental property, net		4,501,881			4,270,004			4,114,824			3,977,807			3,804,403
Cash and cash equivalents		21,789			75,912			16,813			54,103			21,669
Accrued rental income		135,666			129,579			124,297			120,117			116,874
Tenant and other receivables, net		1,349			791			2,069			1,160			1,310
Prepaid expenses and other assets		49,661			18,984			22,916			22,525			17,275
Interest rate swap, assets		63,390			66,602			26,562			8,944			—
Goodwill		339,769			339,769			339,769			339,769			339,769
Intangible lease assets, net		329,585			322,314			316,119			311,277			303,642
Debt issuance costs – unsecured revolving credit facility, net		6,013			6,485			6,956			7,427			4,065
Leasing fees, net		8,506			8,752			9,117			9,391			9,641
Total assets	$	5,457,609		$	5,239,192		$	4,979,442		$	4,852,520		$	4,618,648
Liabilities and equity
Unsecured revolving credit facility	$	197,322		$	219,537		$	320,657		$	266,118		$	102,000
Mortgages, net		86,602			94,753			95,453			96,141			96,846
Unsecured term loans, net		894,692			894,378			587,098			586,884			646,671
Senior unsecured notes, net		844,555			844,367			844,178			843,990			843,801
Interest rate swap, liabilities		—			—			—			1,154			27,171
Accounts payable and other liabilities		47,547			52,594			42,923			40,611			38,038
Dividends payable		54,460			49,886			49,541			47,682			45,914
Accrued interest payable		7,071			10,559			6,086			9,845			6,473
Intangible lease liabilities, net		62,855			64,971			66,864			68,775			70,596
Total liabilities		2,195,104			2,231,045			2,012,800			1,961,200			1,877,510
Equity
Broadstone Net Lease, Inc. stockholders' equity:
Preferred stock, $0.001 par value		—			—			—			—			—
Common stock, $0.00025 par value		47			43			43			42			41
Additional paid-in capital		3,419,395			3,148,075			3,125,377			3,056,560			2,924,168
Cumulative distributions in excess of retained earnings		(386,049	)		(369,260	)		(350,127	)		(336,988	)		(318,476	)
Accumulated other comprehensive loss		59,525			61,834			23,397			5,027			(28,441	)
Total Broadstone Net Lease, Inc. stockholders’ equity		3,092,918			2,840,692			2,798,690			2,724,641			2,577,292
Non-controlling interests		169,587			167,455			167,952			166,679			163,846
Total equity		3,262,505			3,008,147			2,966,642			2,891,320			2,741,138
Total liabilities and equity	$	5,457,609		$	5,239,192		$	4,979,442		$	4,852,520		$	4,618,648

Income Statement Summary

(unaudited, in thousands, except per share data)


	Three Months Ended
	December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021
Revenues
Lease revenues, net	$	112,135		$	103,524		$	98,013		$	93,841		$	92,642
Operating expenses
Depreciation and amortization		45,606			39,400			35,511			34,290			33,476
Property and operating expense		6,397			5,636			4,696			5,044			4,440
General and administrative		9,317			9,942			9,288			8,828			8,526
Provision for impairment of investment in rental properties		—			4,155			1,380			—			207
Total operating expenses		61,320			59,133			50,875			48,162			46,649
Other (expenses) income
Interest income		40			4			—			—			6
Interest expense		(23,773	)		(20,095	)		(17,888	)		(16,896	)		(16,997	)
Cost of debt extinguishment		(77	)		(231	)		—			—			—
Gain on sale of real estate		10,625			61			4,071			1,196			3,732
Income taxes		(106	)		(356	)		(401	)		(412	)		(457	)
Other (expenses) income		(751	)		4,935			2,632			(1,126	)		(51	)
Net income		36,773			28,709			35,552			28,441			32,226
Net income attributable to non-controlling interests		(2,041	)		(1,600	)		(2,036	)		(1,683	)		(1,935	)
Net income attributable to Broadstone Net Lease, Inc.	$	34,732		$	27,109		$	33,516		$	26,758		$	30,291

Weighted average number of common shares outstanding
Basic1		173,283			172,578			169,555			163,809			161,545
Diluted1		183,592			182,971			180,256			174,288			172,094
Net earnings per common share2
Basic and diluted	$	0.20		$	0.16		$	0.20		$	0.16		$	0.19

1 Excludes 396,924, 395,441, 377,407, 370,539, and 373,678, weighted average shares of unvested restricted common stock for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021.

2 Excludes $0.1 million from the numerator for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, related to dividends declared on shares of unvested restricted common stock.

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

(unaudited, in thousands, except per share data)


	Three Months Ended
	December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021
Net income	$	36,773		$	28,709		$	35,552		$	28,441		$	32,226
Real property depreciation and amortization		45,570			39,366			35,479			34,259			33,451
Gain on sale of real estate		(10,625	)		(61	)		(4,071	)		(1,196	)		(3,732	)
Provision for impairment of investment in rental properties		—			4,155			1,380			—			207
FFO	$	71,718		$	72,169		$	68,340		$	61,504		$	62,152
Net write-offs of accrued rental income		—			—			—			1,326			—
Lease termination fee		(1,678	)		(791	)		—			—			—
Cost of debt extinguishment		77			231			—			—			—
Gain on insurance recoveries		(341	)
Severance		—			3			278			120			29
Other expenses (income)1		751			(4,935	)		(2,632	)		1,126			51
Core FFO	$	70,527		$	66,677		$	65,986		$	64,076		$	62,232
Straight-line rent adjustment		(6,825	)		(5,175	)		(4,965	)		(4,934	)		(5,321	)
Adjustment to provision for credit losses		—			(4	)		(1	)		—			(37	)
Amortization of debt issuance costs		988			948			900			856			1,022
Amortization of net mortgage premiums		(26	)		(26	)		(25	)		(27	)		(26	)
Loss on interest rate swaps and other non-cash interest expense		522			639			695			659			696
Amortization of lease intangibles		(1,308	)		(1,176	)		(1,167	)		(1,158	)		(899	)
Stock-based compensation		1,503			1,503			1,381			929			1,025
Deferred taxes		204			—			—			—			—
AFFO	$	65,585		$	63,386		$	62,804		$	60,401		$	58,692

Diluted weighted average shares outstanding2		183,592			182,971			180,256			174,288			172,094
Net earnings per diluted share3	$	0.20		$	0.16		$	0.20		$	0.16		$	0.19
FFO per diluted share3		0.39			0.39			0.38			0.35			0.36
Core FFO per diluted share3		0.38			0.36			0.37			0.37			0.36
AFFO per diluted share3		0.36			0.35			0.35			0.35			0.34

1 Amount includes $0.8 million, ($4.9) million, ($2.6) million and $1.1 million of unrealized and realized foreign exchange (gain) loss for the three months ended December 31,2022, September 30, 2022, June 30, 2022 and March 31, 2022, respectively, primarily associated with our Canadian dollar denominated revolver borrowings.

2 Excludes 396,924, 395,441, 377,407, 370,539, and 373,678, weighted average shares of unvested restricted common stock for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022,and December 31, 2021, respectively.

3 Excludes $0.1 million from the numerator for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, related to dividends declared on shares of unvested restricted common stock.

EBITDA, EBITDAre, and Other-Non GAAP Operating Measures

(unaudited, in thousands)


	Three Months Ended
	December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021
Net income	$	36,773		$	28,709		$	35,552		$	28,441		$	32,226
Depreciation and amortization		45,606			39,400			35,511			34,290			33,476
Interest expense		23,773			20,095			17,888			16,896			16,997
Income taxes		105			356			401			412			457
EBITDA	$	106,257		$	88,560		$	89,352		$	80,039		$	83,156
Provision for impairment of investment in rental properties		—			4,155			1,380			—			207
Gain on sale of real estate		(10,625	)		(61	)		(4,071	)		(1,196	)		(3,732	)
EBITDAre	$	95,632		$	92,654		$	86,661		$	78,843		$	79,631
Adjustment for current quarter acquisition activity 1		1,283			2,358			2,780			3,225			2,002
Adjustment for current quarter disposition activity 2		(440	)		—			(141	)		(79	)		(180	)
Adjustment to exclude net write-offs of accrued rental income		—			—			—			1,326			—
Adjustment to exclude gain on insurance recoveries		(341	)		—			—			—			—
Adjustment to exclude realized / unrealized foreign exchange (gain) loss		796			(4,934	)		(2,632	)		1,125			—
Adjustment to exclude cost of debt extinguishments		77			231			—			—			—
Adjustment to exclude lease termination fees		(1,678	)		(791	)		—			—			—
Adjusted EBITDAre	$	95,329		$	89,518		$	86,668		$	84,440		$	81,453
General and administrative		9,318			9,942			9,288			8,825			8,523
Adjusted Net Operating Income ("NOI")	$	104,647		$	99,460		$	95,956		$	93,265		$	89,976
Straight-line rental revenue, net		(7,315	)		(5,750	)		(5,616	)		(5,456	)		(5,611	)
Other amortization and non-cash charges		(1,353	)		(1,177	)		(1,167	)		(1,157	)		(847	)
Adjusted Cash NOI	$	95,979		$	92,533		$	89,173		$	86,652		$	83,518
Annualized EBITDAre	$	382,528		$	370,616		$	346,642		$	315,375		$	318,526
Annualized Adjusted EBITDAre		381,315			358,072			346,672			337,759			325,812
Annualized Adjusted NOI		418,585			397,834			383,830			373,060			359,904
Annualized Adjusted Cash NOI		383,914			370,128			356,701			346,606			334,072

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.

Lease Revenues Detail

(unaudited, in thousands)


	Three Months Ended
	December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021
Contractual rental amounts billed for operating leases	$	96,208		$	91,208		$	87,505		$	84,396		$	81,482
Adjustment to recognize contractual operating lease billings on a straight- line basis		6,898			5,344			5,090			5,021			5,372
Net write-offs of accrued rental income		—			—			—			(1,326	)		—
Variable rental amounts earned		721			309			291			186			433
Earned income from direct financing leases		693			719			721			723			725
Interest income from sales-type leases		15			14			15			14			15
Operating expenses billed to tenants		5,720			5,061			4,263			4,735			4,464
Other income from real estate transactions		2,019			874			134			42			1
Adjustment to revenue recognized for uncollectible rental amounts billed, net		(139	)		(5	)		(6	)		50			150
Total Lease revenues, net	$	112,135		$	103,524		$	98,013		$	93,841		$	92,642

Capital Structure

(in thousands, except per share data)


EQUITY
Shares of Common Stock		186,114
OP Units		10,205
Common Stock & OP Units		196,319
Price Per Share / Unit at December 31, 2022	$	16.21
IMPLIED EQUITY MARKET CAPITALIZATION	$	3,182,331
% of Total Capitalization		61.0	%
DEBT
Unsecured Revolving Credit Facility - 2026	$	197,322
Unsecured Term Loans		900,000
Unsecured Term Loan - 2026		400,000
Unsecured Term Loan - 2027		200,000
Unsecured Term Loan - 2029		300,000
Senior Unsecured Notes		850,000
Senior Unsecured Notes - 2027		150,000
Senior Unsecured Notes - 2028		225,000
Senior Unsecured Notes - 2030		100,000
Senior Unsecured Public Notes - 2031		375,000
Mortgage Debt - Various		86,754
TOTAL DEBT	$	2,034,076
% of Total Capitalization		39.0	%
% of Total Debt / Floating Rate Debt		6.5	%
% of Total Debt / Fixed Rate Debt		93.5	%
% of Total Debt / Secured Debt		4.3	%
% of Total Debt / Unsecured Debt		95.7	%

Total Capitalization	$	5,216,407
Less: Cash and Cash Equivalents		(21,789	)
Enterprise Value	$	5,194,618

Equity Rollforward

(in thousands)


	Shares of Common Stock				OP Units				Total Diluted Shares
Balance, January 1, 2022		162,383				10,323				172,706
ATM offerings		6,273				—				6,273
Board of directors fees		12				—				12
Grants of restricted stock awards		142				—				142
Retirement of common shares		(59	)			—				(59	)
Forfeiture of restricted stock awards		(1	)			—				(1	)
Balance, March 31, 2022		168,750				10,323				179,073
ATM offerings		3,236				—				3,236
Board of directors fees		13				—				13
Grants of restricted stock awards		32				—				32
Forfeiture of restricted stock awards		(8	)			—				(8	)
Balance, June 30, 2022		172,023				10,323				182,346
ATM offerings		962				—				962
OP Unit conversions		118				(118	)			—
Board of directors fees		7				—				7
Grants of restricted stock awards		6				—				6
Forfeiture of restricted stock awards		(1	)			—				(1	)
Balance, September 30, 2022		173,115				10,205				183,320
Forfeiture of restricted stock awards		(1	)			—				(1	)
Settlement of August 2022 forward equity offering		13,000				—				13,000
Balance, December 31, 2022		186,114		—		10,205		—		196,319
Percentage ownership of OP at December 31, 2022		94.8	%			5.2	%			100	%

Debt Outstanding

(in thousands)


	Outstanding Balance
	December 31,			December 31,
	2022			2021			Interest Rate	Maturity Date
Unsecured revolving credit facility	$	197,322		$	102,000		Applicable reference rate + 0.85%1	Mar. 2026
Unsecured term loans:
2022 Unsecured Term Loan		—			60,000		one-month LIBOR + 1.00%	Feb. 2022
2024 Unsecured Term Loan		—			190,000		one-month LIBOR + 1.00%	Jun. 2024
2026 Unsecured Term Loan		400,000			400,000		one-month LIBOR + 1.00%	Feb. 2026
2027 Unsecured Term Loan		200,000			—		one-month adjusted SOFR + 0.95%	Aug. 2027
2029 Unsecured Term Loan		300,000			—		one-month adjusted SOFR + 1.25%	Aug. 2029
Total unsecured term loans		900,000			650,000
Unamortized debt issuance costs, net		(5,308	)		(3,329	)
Total unsecured term loans, net		894,692			646,671
Senior unsecured notes:
2027 Senior Unsecured Notes - Series A		150,000			150,000		4.84%	Apr. 2027
2028 Senior Unsecured Notes - Series B		225,000			225,000		5.09%	Jul. 2028
2030 Senior Unsecured Notes - Series C		100,000			100,000		5.19%	Jul. 2030
2031 Senior Unsecured Public Notes		375,000			375,000		2.60%	Sep. 2031
Total senior unsecured notes		850,000			850,000
Unamortized debt issuance costs and original issuance discount, net		(5,445	)		(6,199	)
Total senior unsecured notes, net		844,555			843,801
Total unsecured debt, net	$	1,936,569		$	1,592,472

1 At December 31, 2022 a balance of $123.5 million was subject to the one-month SOFR. The remaining balance includes $100 million CAD borrowings remeasured to $73.8 million USD, which was subject to the one-month Canadian Dollar Offered Rate.


	Origination	Maturity
	Date	Date	Interest	December 31,			December 31,
Lender	(Month/Year)	(Month/Year)	Rate	2022			2021
Wilmington Trust National Association	Apr-19	Feb-28	4.92%	$	45,516		$	46,760
Wilmington Trust National Association	Jun-18	Aug-25	4.36%		19,150			19,557
PNC Bank	Oct-16	Nov-26	3.62%		16,675			17,094
Aegon	Apr-12	Oct-23	6.38%		5,413			6,249
T2 Durham I, LLC	Jul - 21	Jul -24	Greater of Prime + 1.25% or 5.00%		—			7,500
Total mortgages					86,754			97,160
Debt issuance costs, net					(152	)		(314	)
Mortgages, net				$	86,602		$	96,846


Year of Maturity	Term Loans		Revolving Credit Facility		Senior Notes		Mortgages		Interest Expense		Total
2023	$	—	$	—	$	—	$	7,582	$	79,171	$	86,753
2024		—		—		—		2,260		78,906		81,166
2025		—		—		—		20,195		80,686		100,881
2026		400,000		197,322		—		16,843		57,180		671,345
2027		200,000		—		150,000		1,596		42,401		393,997
Thereafter		300,000		—		700,000		38,278		64,255		1,102,533
Total	$	900,000	$	197,322	$	850,000	$	86,754	$	402,599	$	2,436,675

Net Debt Metrics

(in thousands)



	December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021
Debt
Unsecured revolving credit facility	$	197,322		$	219,537		$	320,657		$	266,118		$	102,000
Unsecured term loans, net		894,692			894,378			587,098			586,884			646,671
Senior unsecured notes, net		844,555			844,367			844,178			843,990			843,801
Mortgages, net		86,602			94,753			95,453			96,141			96,846
Debt issuance costs		10,905			11,498			8,991			9,419			9,842
Gross Debt		2,034,076			2,064,533			1,856,377			1,802,552			1,699,160
Cash and cash equivalents		(21,789	)		(75,912	)		(16,813	)		(54,103	)		(21,669	)
Restricted cash		(38,251	)		(6,449	)		(12,163	)		(11,444	)		(6,100	)
Net Debt	$	1,974,036		$	1,982,172		$	1,827,401		$	1,737,005		$	1,671,391
Anticipated proceeds from forward equity agreement		—			(270,732	)		—			—			—
Pro Forma Net Debt	$	1,974,036		$	1,711,440		$	1,827,401		$	1,737,005		$	1,671,391

Net Debt to Annualized EBITDAre	5.2x			5.3x			5.3x			5.5x			5.3x
Net Debt to Annualized Adjusted EBITDAre	5.2x			5.5x			5.3x			5.1x			5.1x
Pro Forma Net Debt to Annualized Adjusted EBITDAre	5.2x			4.8x			5.3x			5.1x			5.1x

Covenants

The following is a summary of key financial covenants for the Company's revolving credit facility and unsecured term loans and senior unsecured notes. The covenants associated with the Revolving Credit Facility, Unsecured Term Loans with commercial banks, and the Series A-C Senior Unsecured Notes, are reported to the lenders via quarterly covenant reporting packages. The covenants associated with the 2031 Senior Unsecured Public Notes are not required to be reported externally to third parties, and are instead calculated in connection with borrowing activity and for financial reporting purposes only. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of December 31, 2022, the Company believes it is in compliance with the covenants.

Covenants

Required

Revolving Credit Facility and Unsecured Term Loans

Senior Unsecured 
Notes Series 
A, B, & C

2031 Senior Unsecured Public Notes

Leverage ratio

≤ 0.60 to 1.00

0.34

0.35

Not Applicable

Secured indebtedness ratio

≤ 0.40 to 1.00

0.02

0.01

Not Applicable

Unencumbered coverage ratio

≥ 1.75 to 1.00

3.72

Not Applicable

Not Applicable

Fixed charge coverage ratio

≥ 1.50 to 1.00

3.52

3.52

Not Applicable

Total unsecured indebtedness to 
   total unencumbered eligible 
   property value

≤ 0.60 to 1.00

0.36

0.37

Not Applicable

Dividends and other restricted 
   payments

Only applicable 
in case of default

Not Applicable

Not Applicable

Not Applicable

Aggregate debt ratio

≤ 0.60 to 1.00

Not Applicable

Not Applicable

0.37

Consolidated income available for 
   debt to annual debt service 
   charge

≥ 1.50 to 1.00

Not Applicable

Not Applicable

4.65

Total unencumbered assets to 
   total unsecured debt

≥ 1.50 to 1.00

Not Applicable

Not Applicable

2.73

Secured debt ratio

≤ 0.40 to 1.00

Not Applicable

Not Applicable

0.02

Debt Maturities

(dollars in millions)

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

Investment Activity

(square feet and dollars in thousands)

The following tables summarize the Company's investment activity during 2022.


	Q1 2022			Q2 2022			Q3 2022			Q4 2022			2022
Acquisitions:
Number of transactions		6			11			8			7			32
Number of properties		27			15			27			17			86
Square feet		619			1,514			2,414			2,678			7,225
Acquisition price	$	209,973		$	164,995		$	203,926		$	299,539		$	878,433
Initial cash cap rate		5.7	%		6.5	%		6.5	%		6.7	%		6.4	%
Initial GAAP cap rate		6.4	%		8.2	%		7.9	%		8.0	%		7.6	%
Weighted avg. lease term (years)		19.3			20.0			20.9			19.7			20.3
Weighted average annual rent increase		1.5	%		2.2	%		2.0	%		2.0	%		2.0	%

Revenue generating capital expenditures:
Number of properties1		-			1			1			1			3
Investments2		-		$	17,387		$	600		$	10,754		$	28,741
Initial cash cap rate		-			5.8	%		8.1	%		6.8	%		5.9	%
Weighted avg. lease term (years)		-			19.3			14.0			18.8			19.0
Weighted average annual rent increase		-			1.8	%		3.5	%		1.8	%		1.8	%

Total investments	$	209,973		$	182,382		$	204,526		$	310,293		$	907,174
Total initial cash cap rate		5.7	%		6.4	%		6.5	%		6.7	%		6.4	%
Total weighted average lease term (years)		19.3			19.9			20.8			19.7			20.3
Total weighted average annual rent increase		1.5	%		2.1	%		2.0	%		2.0	%		2.0	%

1 Number of properties includes revenue generating capital expenditures on existing properties.

2 Total unfunded investment commitments at December 31, 2022 were $30.6 million


Q4 Acquisitions
Property Type	Number of Properties		Square Feet		Weighted Average Lease Term (years)		Weighted Average Annual Rent Increase			Acquisition Price
Industrial		11		2,629		19.2		2.0	%	$	281,389
Retail		5		37		16.0		1.2	%		15,131
Office		1		12		20.1		2.0	%		3,019
Total Properties		17		2,678		19.7		2.0	%	$	299,539


2022 Acquisitions:
Property Type	Number of Properties		Square Feet		Weighted Average Lease Term (years)		Weighted Average Annual Rent Increase			Acquisition Price
Industrial		40		6,537		21.4		2.2	%	$	615,823
Retail		24		472		16.5		1.5	%		125,495
Restaurant		19		148		19.6		1.1	%		112,410
Healthcare		2		56		11.9		2.6	%		21,686
Office		1		12		20.1		2.0	%		3,019
Total Properties		86		7,225		20.3		2.0	%	$	878,433

Dispositions

(square feet and dollars in thousands)

The following table summarizes the Company's property disposition activity during 2022.


Q1 2022
Property Type	Number of Properties		Square Feet		Acquisition Price		Disposition Price		Net Book Value
Restaurant		1		8	$	3,891		5,212	$	3,824
Total Properties		1		8	$	3,891	$	5,212	$	3,824
Weighted average cash cap rate										5.7	%

Q2 2022
Property Type	Number of Properties		Square Feet		Acquisition Price		Disposition Price		Net Book Value
Restaurant		3		13	$	7,792	$	11,889	$	7,311
Total Properties		3		13	$	7,792	$	11,889	$	7,311
Weighted average cash cap rate										5.1	%


Q3 2022
Property Type	Number of Properties		Square Feet		Acquisition Price		Disposition Price		Net Book Value
Retail		1		34	$	6,901	$	1,650	$	1,557
Total Properties		1		34	$	6,901	$	1,650	$	1,557
Weighted average cash cap rate									N/A1
1 Property was vacant at the time of disposition.

Q4 2022
Property Type	Number of Properties		Square Feet		Acquisition Price		Disposition Price		Net Book Value
Industrial		1		314	$	23,289	$	30,565	$	21,970
Restaurant		2		13	$	6,447	$	8,631	$	5,823
Total Properties		3		327	$	29,736	$	39,196	$	27,793
Weighted average cash cap rate										5.7	%


2022
Property Type	Number of Properties		Square Feet		Acquisition Price		Disposition Price		Net Book Value
Industrial		1		314	$	23,289	$	30,565	$	21,970
Restaurant		6		34	$	18,130	$	25,732	$	16,958
Retail		1		34	$	6,901	$	1,650	$	1,557
Total Properties		8		382	$	48,320	$	57,947	$	40,485
Weighted average cash cap rate										5.6	%

Portfolio at a Glance: Key Metrics


	December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021
Properties		804			790			764			752			726
U.S. States		44			44			44			43			42
Canadian Provinces		4			4			4			4			1
Total Annualized Base Rent	$389.1M			$371.9M			$360.0M			$347.7M			$334.1M
Total Rentable Sq. Footage	39.1M			36.8M			34.4M			32.8M			32.2M
Tenants		221			218			213			210			204
Brands		211			208			203			198			189
Industries		55			56			57			56			56
Occupancy (based on SF)		99.4	%		99.3	%		99.8	%		99.8	%		99.8	%
Rent Collection		99.9	%		100.0	%		100.0	%		100.0	%		100.0	%
Top Ten Tenant Concentration		19.0	%		17.1	%		16.5	%		17.1	%		17.5	%
Top Twenty Tenant Concentration		31.4	%		29.8	%		29.4	%		30.0	%		30.3	%
Investment Grade (tenant/guarantor)		15.4	%		16.0	%		16.4	%		15.3	%		15.7	%
Financial Reporting Coverage1		94.3	%		94.1	%		94.0	%		94.2	%		94.0	%
Rent Coverage Ratio (Restaurants Only)	3.2x			3.1x			3.3x			3.2x			3.2x
Weighted Average Annual Rent Increases		2.0	%		2.0	%		2.0	%		2.0	%		2.0	%
Weighted Average Remaining Lease Term	10.9 years			10.7 years			10.6 years			10.5 years			10.5 years
Master Leases (based on ABR)
Total Portfolio		40.8	%		37.7	%		36.1	%		34.5	%		32.7	%
Multi-site Tenants		67.7	%		65.4	%		63.9	%		61.6	%		59.2	%

1 Includes 8.5%, 8.8%, 9.0%, 9.1%, and 9.4%, related to tenants not required to provide financial information under the terms of our lease, but whose financial statements are available publicly at December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021.

Diversification: Tenants & Brands

Top 20 Tenants


Tenant	Property Type	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
Roskam Baking Company *	Food Processing		7	$	15,605		4.0	%		2,250		5.7	%
AHF, LLC*	Distribution & Warehouse/Manufacturing		9		8,995		2.3	%		2,014		5.1	%
Jack's Family Restaurants *	Quick Service Restaurants		43		7,310		1.9	%		147		0.4	%
Joseph T. Ryerson & Son, Inc	Distribution & Warehouse		11	$	6,491		1.7	%		1,537		3.9	%
Red Lobster Hospitality & Red Lobster Restaurants LLC*	Casual Dining		19		6,178		1.6	%		158		0.4	%
J. Alexander's, LLC*	Casual Dining		16		6,115		1.6	%		131		0.4	%
Axcelis Technologies, Inc.	Flex and R&D		1	$	5,991		1.5	%		417		1.1	%
Dollar General Corporation	General Merchandise		60		5,956		1.5	%		562		1.4	%
Hensley & Company*	Distribution & Warehouse		3		5,871		1.5	%		577		1.5	%
BluePearl Holdings, LLC**	Animal Health Services		13	$	5,543		1.4	%		165		0.4	%
Total Top 10 Tenants			182	$	74,055		19.0	%		7,958		20.3	%

Outback Steakhouse of Florida LLC*	Casual Dining		22	$	5,365		1.4	%		140		0.4	%
Tractor Supply Company	General Merchandise		21		5,349		1.4	%		417		1.1	%
Krispy Kreme Doughnut Corporation	Quick Service Restaurants/ Food Processing		27		5,034		1.3	%		156		0.4	%
Siemens Medical Solutions USA, Inc. & Siemens Corporation	Manufacturing/Flex and R&D		2		5,012		1.2	%		545		1.4	%
Big Tex Trailer Manufacturing, Inc.*	Automotive/Distribution & Warehouse/Manufacturing/ Corporate Headquarters		17		4,957		1.2	%		1,302		3.3	%
Nestle' Dreyer's Ice Cream Company1	Cold Storage		1		4,543		1.2	%		309		0.8	%
Carvana, LLC*	Industrial Services		2		4,509		1.2	%		230		0.6	%
Klosterman Bakery*	Food Processing		11		4,500		1.2	%		549		1.4	%
Arkansas Surgical Hospital	Surgical		1		4,475		1.2	%		129		0.3	%
American Signature, Inc.	Home Furnishings		6		4,309		1.1	%		474		1.2	%
Total Top 20 Tenants			292	$	122,108		31.4	%		12,209		31.2	%

1Nestle's ABR excludes $1.6 million of rent paid under a sub-lease for an additional property, which will convert to a prime lease no later than August, 2024

*Subject to a master lease.

**Includes properties leased by multiple tenants, some, not all, of which are subject to master leases.

Top 20 Brands


Brand	Property Type	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
Roskam Baking Company*	Food Processing		7		15,605		4.0	%		2,250		5.7	%
AHF, LLC*	Distribution & Warehouse/Manufacturing		9		8,995		2.3	%		2,014		5.1	%
Jack's Family Restaurants *	Quick Service Restaurants		43		7,309		1.9	%		147		0.4	%
Ryerson	Distribution & Warehouse		11		6,491		1.7	%		1,537		3.9	%
Red Lobster*	Casual Dining		19		6,178		1.6	%		157		0.4	%
Axcelis	Flex and R&D		1		5,991		1.5	%		417		1.1	%
Dollar General Corporation	General Merchandise		60		5,956		1.5	%		562		1.4	%
Hensley*	Distribution & Warehouse		3		5,871		1.5	%		577		1.5	%
BluePearl Veterinary Partners**	Animal Health Services		13		5,543		1.4	%		165		0.4	%
Bob Evans Farms*	Casual Dining/Food Processing		21		5,391		1.4	%		281		0.8	%
Total Top 10 Brands			187	$	73,330		18.8	%		8,107		20.7	%

Tractor Supply Co.	General Merchandise		21		5,349		1.4	%		417		1.1	%
Krispy Kreme	Quick Service Restaurants/ Food Processing		27		5,034		1.3	%		156		0.4	%
Siemens	Manufacturing/Flex and R&D		2		5,012		1.2	%		545		1.4	%
Big Tex Trailers*	Automotive/Distribution & Warehouse/Manufacturing/ Corporate Headquarters		17		4,957		1.2	%		1,302		3.3	%
Outback Steakhouse*	Casual Dining		20		4,641		1.2	%		126		0.3	%
Nestle'	Cold Storage		1		4,543		1.2	%		310		0.8	%
Carvana, LLC*	Industrial Services		2		4,509		1.2	%		230		0.6	%
Klosterman Bakery*	Food Processing		11		4,500		1.2	%		549		1.4	%
Arkansas Surgical Hospital	Surgical		1		4,476		1.2	%		129		0.3	%
Wendy's**	Quick Service Restaurants		29		4,319		1.1	%		84		0.2	%
Total Top 20 Brands			318	$	120,670		31.0	%		11,955		30.5	%

1Nestle's ABR excludes $1.6 million of rent paid under a sub-lease for an additional property, which will convert to a prime lease no later than August, 2024

*Subject to a master lease.

**Includes properties leased by multiple tenants, some, not all, of which are subject to master leases.

Diversification: Property Type

(rent percentages based on ABR)

Diversification: Property Type (continued)


Property Type	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
Industrial
Manufacturing		80	$	63,406		16.3	%		11,873		30.3	%
Distribution & Warehouse		47		51,406		13.2	%		9,459		24.2	%
Food Processing		34		44,427		11.4	%		5,516		14.1	%
Flex and R&D		7		17,498		4.5	%		1,457		3.7	%
Cold Storage		4		12,810		3.3	%		933		2.4	%
Industrial Services		22		10,851		2.8	%		587		1.5	%
Untenanted		1		—		0.0	%		122		0.3	%
Industrial Total		195		200,398		51.5	%		29,947		76.5	%
Healthcare
Clinical		52		27,020		6.9	%		1,091		2.8	%
Healthcare Services		29		10,679		2.7	%		478		1.2	%
Animal Health Services		27		10,549		2.7	%		405		1.0	%
Surgical		12		10,463		2.7	%		329		0.9	%
Life Science		9		7,867		2.1	%		549		1.4	%
Untenanted		1		—		—			18		0.0	%
Healthcare Total		130		66,578		17.1	%		2,870		7.3	%
Restaurant
Casual Dining		102		27,387		7.0	%		678		1.7	%
Quick Service Restaurants		146		24,993		6.5	%		499		1.3	%
Restaurant Total		248		52,380		13.5	%		1,177		3.0	%
Retail
General Merchandise		132		24,435		6.3	%		1,865		4.8	%
Automotive		68		12,667		3.3	%		776		2.0	%
Home Furnishings		13		7,147		1.8	%		797		2.0	%
Child Care		1		375		0.1	%		10		0.0	%
Retail Total		214		44,624		11.5	%		3,448		8.8	%
Office
Corporate Headquarters		8		10,761		2.8	%		691		1.8	%
Strategic Operations		5		9,875		2.5	%		615		1.6	%
Call Center		3		4,478		1.1	%		345		0.9	%
Untenanted		1		—		—			46		0.1	%
Office Total		17		25,114		6.4	%		1,697		4.4	%
Total		804	$	389,094		100.0	%		39,139		100.0	%

Key Statistics by Property Type


	Q4 2022			Q3 2022			Q2 2022			Q1 2022			Q4 2021
Industrial
Number of properties		195			185			166			158			156
Square feet (000s)		29,947			27,631			25,279			23,881			23,617
Weighted average lease term (years)		11.2			11.2			10.8			10.3			10.5
Weighted average annual rent escalation		2.0	%		2.0	%		2.0	%		2.0	%		2.0	%

Healthcare
Number of properties		130			130			129			128			128
Square feet (000s)		2,870			2,869			2,855			2,813			2,813
Weighted average lease term (years)		8.2			8.2			8.4			8.6			8.9
Weighted average annual rent escalation		2.2	%		2.2	%		2.2	%		2.2	%		2.2	%

Restaurant
Number of properties		248			250			247			250			235
Square feet (000s)		1,177			1,191			1,174			1,188			1,064
Weighted average lease term (years)		14.8			14.8			15.0			15.3			15.0
Weighted average annual rent escalation		1.8	%		1.8	%		1.8	%		1.9	%		2.0	%

Retail
Number of properties		214			209			206			200			191
Square feet (000s)		3,448			3,411			3,404			3,235			3,009
Weighted average lease term (years)		10.5			10.5			10.9			11.2			10.5
Weighted average annual rent escalation		1.6	%		1.6	%		1.6	%		1.6	%		1.5	%

Office
Number of properties		17			16			16			16			16
Square feet (000s)		1,697			1,686			1,685			1,685			1,685
Weighted average lease term (years)		6.1			6.1			6.0			6.3			6.5
Weighted average annual rent escalation		2.5	%		2.5	%		2.4	%		2.5	%		2.4	%

Diversification: Tenant Industry


Industry	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
Restaurants		251	$	53,151		13.7	%		1,220		3.1	%
Health Care Facilities		103		52,306		13.4	%		2,044		5.2	%
Packaged Foods & Meats		29		37,998		9.8	%		4,713		12.0	%
Distributors		27		15,922		4.1	%		2,695		6.9	%
Auto Parts & Equipment		43		15,348		3.9	%		2,668		6.8	%
Food Distributors		8		14,699		3.8	%		1,786		4.6	%
Specialty Stores		31		13,805		3.5	%		1,338		3.4	%
Specialized Consumer Services		49		12,725		3.3	%		728		1.9	%
Home Furnishing Retail		18		12,684		3.3	%		1,858		4.7	%
Metal & Glass Containers		8		10,010		2.6	%		2,206		5.6	%
General Merchandise Stores		96		9,634		2.5	%		880		2.2	%
Industrial Machinery		20		9,317		2.4	%		1,949		5.0	%
Healthcare Services		18		9,231		2.4	%		515		1.3	%
Forest Products		9		8,995		2.3	%		2,014		5.1	%
Aerospace & Defense		6		7,419		1.9	%		776		2.0	%
Other (40 industries)		85		105,850		27.1	%		11,530		29.6	%
Untenanted properties		3		—		—			219		0.6	%
Total		804	$	389,094		100.0	%		39,139		100.0	%

Diversification: Geography

(rent percentages based on ABR)


State / Province	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio			State / Province	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
TX		72	$	37,883		9.7	%		3,621		9.3	%	LA		4		3,400		0.9	%		194		0.5	%
MI		55		32,545		8.4	%		3,811		9.7	%	MS		11		3,320		0.9	%		430		1.1	%
IL		32		24,148		6.2	%		2,424		6.2	%	NE		6		3,173		0.8	%		509		1.3	%
WI		35		21,087		5.4	%		2,163		5.5	%	MD		4		3,002		0.8	%		293		0.7	%
CA		13		18,773		4.8	%		1,718		4.4	%	IA		4		2,768		0.7	%		622		1.6	%
OH		47		18,667		4.8	%		1,728		4.4	%	NM		9		2,733		0.7	%		107		0.3	%
FL		42		16,197		4.2	%		844		2.2	%	SC		13		2,556		0.7	%		308		0.8	%
IN		32		15,552		4.0	%		1,906		4.9	%	CO		4		2,501		0.6	%		126		0.3	%
MN		21		15,341		3.9	%		2,500		6.4	%	WV		16		2,490		0.6	%		109		0.3	%
TN		50		15,117		3.9	%		1,103		2.8	%	UT		3		2,432		0.6	%		280		0.7	%
NC		37		13,935		3.6	%		1,435		3.7	%	CT		2		1,767		0.5	%		55		0.1	%
AL		53		12,151		3.1	%		873		2.2	%	MT		7		1,563		0.4	%		43		0.1	%
GA		33		11,473		2.9	%		1,576		4.0	%	NV		2		1,361		0.3	%		81		0.2	%
AZ		9		10,759		2.8	%		909		2.3	%	DE		4		1,167		0.3	%		133		0.3	%
MA		5		10,461		2.7	%		1,026		2.6	%	ND		2		954		0.2	%		28		0.1	%
PA		22		9,595		2.5	%		1,836		4.7	%	VT		2		420		0.1	%		24		0.1	%
KY		26		9,424		2.4	%		1,148		2.9	%	WY		1		307		0.1	%		21		0.1	%
NY		26		9,265		2.4	%		680		1.7	%	OR		1		136		0.0	%		9		0.0	%
AR		12		8,891		2.3	%		544		1.4	%	SD		1		81		0.0	%		9		0.0	%
OK		21		7,633		2.0	%		977		2.5	%	Total U.S.		797		381,436		98.0	%		38,709		98.9	%
MO		12		6,119		1.6	%		1,138		2.9	%	BC		2		4,408		1.1	%		253		0.6	%
KS		11		5,590		1.4	%		648		1.7	%	ON		3		1,984		0.5	%		101		0.3	%
VA		17		5,479		1.4	%		204		0.5	%	AB		1		933		0.2	%		51		0.1	%
NJ		3		4,909		1.3	%		366		0.9	%	MB		1		333		0.2	%		25		0.1	%
WA		15		4,311		1.1	%		150		0.4	%	Total Canada		7		7,658		2.0	%		430		1.1	%
													Grand Total		804	$	389,094		100.0	%		39,139		100.0	%

Lease Expirations

(rent percentages based on ABR)


Expiration Year	# Properties		# Leases		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
2023		6		9		4,865		1.2	%		559		1.4	%
2024		11		11		14,224		3.7	%		1,689		4.3	%
2025		19		22		6,904		1.8	%		385		1.0	%
2026		35		35		19,317		5.0	%		1,413		3.6	%
2027		29		31		23,974		6.2	%		2,079		5.3	%
2028		35		35		23,742		6.1	%		2,248		5.7	%
2029		72		73		22,356		5.7	%		2,724		7.0	%
2030		101		101		54,280		14.0	%		5,110		13.1	%
2031		33		33		8,622		2.2	%		804		2.1	%
2032		62		63		31,420		8.1	%		3,469		8.9	%
2033		49		49		18,479		4.7	%		1,575		4.0	%
2034		33		33		6,295		1.6	%		409		1.0	%
2035		17		17		12,774		3.3	%		1,927		4.9	%
2036		87		87		26,414		6.8	%		2,931		7.5	%
2037		23		23		16,892		4.3	%		1,124		2.9	%
2038		35		35		7,962		2.0	%		437		1.1	%
2039		11		11		6,940		1.8	%		803		2.1	%
2040		31		31		5,744		1.5	%		312		0.8	%
2041		42		42		20,534		5.3	%		1,737		4.4	%
2042		59		59		43,460		11.2	%		4,813		12.3	%
Thereafter		11		11		13,896		3.5	%		2,372		6.0	%
Untenanted properties		3		—		-		0.0	%		219		0.6	%
Total		804		811		389,094		100.0	%		39,139		100.0	%

Occupancy

Occupancy by Rentable Square Footage

Change in Occupancy


	Number of properties
Vacant properties at January 1, 2022		2
Lease expirations1		1
Leasing activities		(1	)
Vacant dispositions		—
Vacant properties at March 31, 2022		2
Lease expirations1		2
Leasing activities		(2	)
Vacant dispositions		—
Vacant properties at June 30, 2022		2
Lease expirations1		4
Leasing activities		(2	)
Vacant dispositions		(1	)
Vacant properties at September 30, 2022		3
Lease expirations1	-
Leasing activities	-
Vacant dispositions	-
Vacant properties at December 31, 2022		3

1 Includes scheduled and unscheduled expirations (including leases rejected in bankruptcy), as well as future expirations resolved in the periods indicated above.

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 general and administrative expenses incurred at the corporate level. 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 short-term rent deferrals, abatements or free rent, and adjusted to remove rent from properties sold during the month and to include a full month of contractual cash rent for investments made during the month.

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

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 at 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, realized or unrealized gains and losses on foreign currency transactions, 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), Core Funds From Operations (Core FFO), and Adjusted Funds From Operations (AFFO): FFO, Core FFO, and AFFO are non-GAAP measures. We believe the use of FFO, Core 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, Core 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 Core FFO by adjusting FFO to exclude certain GAAP income and expense amounts that we believe are infrequently recurring, unusual in nature, or not related to its core real estate operations, including write-offs or recoveries of accrued rental income, lease termination fees, the change in fair value of our earnout liability, cost of debt extinguishments, unrealized and realized gains or losses on foreign currency transactions, severance, and other extraordinary items. We compute AFFO by adjusting Core FFO for certain non-cash revenues and expenses, including straight-line rents, 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, relalized gain or losses on foreign currency transactions, internalization expenses, stock-based compensation, severance, extraordinary items, and other specified non-cash items.

Definitions and Explanations (continued)

GAAP Cap Rate: GAAP Cap Rate represents the estimated first year GAAP yield to be generated on a real estate investment, which was computed at the time of investment based on the first full year of rental income computed in accordance with GAAP, divided by the purchase price including capitalized acquisition costs for the property.

Gross Debt: We define Gross Debt as total debt plus debt issuance costs and original issuance discount.

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" or "leased" 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.