Earnings

Broadstone Lifts 2026 Investment Floor After Equity Return

The Tip Desk · November 8, 2026 · 4 min read

AFFO was $77.8 million, or $0.39 a share, up 5.4% year over year as the company completed a $259.3 million public equity offering.

Broadstone Net Lease (BNL), an industrial-focused net lease REIT, generated AFFO of $77.8 million, or $0.39 a share, for the three months ended September 30, 2026, a 5.4% increase from a year earlier. That year-over-year gain followed a 2.6% rise in the second quarter. Net income was $28.1 million, or $0.14 a share, which the company described as consistent with the same period in the prior year. Revenue was $121.9 million.

Same-store rental revenue growth slowed to 0.7% from 2.2% in the prior quarter. The company said the increase was driven by contractual rent increases and leasing activity in prior periods. It collected 99.9% of base rents due for the quarter. General and administrative expenses were $10.8 million; core G&A was $7.4 million.

The quarter’s defining capital event was the return to public equity markets. In August 2026 the company completed a public offering of 12,650,000 shares at $20.50 for estimated gross proceeds of about $259.3 million, in connection with forward sale agreements, after four years away from the public equity markets. It also sold 1.8 million shares on a forward basis at a weighted average $21.43 for about $38.9 million under its ATM program, none of which had settled. Inclusive of the forward equity offering, expected net proceeds from forward sale agreements if settled as of September 30 were about $409.3 million. The company said it expects to settle the common equity offering program by the September 2027 maturity date.

Investment activity accelerated. The company invested $236.6 million in the quarter, including $63.8 million in new property acquisitions, $137.1 million in build-to-suit developments, $35.1 million in transitional capital, and $0.6 million in redevelopments, versus $91.5 million invested in the second quarter. The completed acquisition had an initial cash capitalization rate of 7.7%, a 15.0-year lease term, a 2.0% annual rent increase, and a straight-line yield of 8.8%.

It started three build-to-suit developments totaling $325.8 million in estimated total project investments, including two retail projects and continued funding of the previously announced $303 million advanced-technology facility in Colorado for a Fortune 20 investment-grade company. Combined with projects already underway, the in-process build-to-suit pipeline stood at $456.3 million as of the release date. Six build-to-suit developments totaling $95.3 million stabilized during the quarter at a weighted average cash capitalization rate of 7.3%. Subsequent to quarter-end, the $115.4 million, 1.2 million-square-foot facility in Bremen, Georgia, reached stabilization at an initial cash capitalization rate of 7.8%. As of the release date, remaining estimated investments for build-to-suit developments to be funded through the fourth quarter of 2027 were about $337.6 million.

The company sold three properties for gross proceeds of $12.5 million at a 6.6% capitalization rate on tenanted properties, versus nine properties for $62.0 million at a 6.4% cap rate in the second quarter. It entered into a new $300 million senior unsecured delayed-draw term loan with an initial maturity of January 30, 2030. As of September 30, total outstanding debt was $2.9 billion, with $428.8 million of available capacity on the unsecured revolving credit facility and $200.0 million available on the delayed-draw term loan.

The portfolio comprised 767 properties, about 42.3 million rentable square feet, and 206 tenants, with no single tenant above 3.7% of annualized base rent, a 9.3-year ABR weighted average lease term, and a 2.1% ABR weighted average annual rent increase.

The board raised the quarterly dividend from $0.2925 to $0.295 a share, a 0.9% increase, after leaving the dividend unchanged in the prior quarter. For 2026, BNL expects AFFO of $1.55 to $1.57 a share. It revised the investment assumption up to $700 million to $800 million from $600 million to $800 million and dispositions up to $150 million to $200 million from $100 million to $150 million. Core G&A guidance of $30 million to $31 million. Full-year AFFO per share guidance now includes less than $0.005 a share of estimated dilution from about 350,000 to 600,000 weighted average shares due to outstanding forward equity under the treasury stock method.

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Broadstone Net Lease, Inc. — all coverage and financials