Broadstone Net Lease, Inc.
For the period ended Mar 31, 2025. Filed May 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 1, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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Diversification by Tenant
| Tenant | Property Type | # of Properties | ABR(’000s) | ABR as a % of Total Portfolio | Square Feet(’000s) | SF as a % of Total Portfolio |
|---|---|---|---|---|---|---|
| Roskam Baking Company, LLC* | Food Processing | 7 | $16,236 | 4.0% | 2,250 | 5.7% |
| United Natural Foods, Inc. | Distribution & Warehouse | 1 | 14,386 | 3.6% | 1,016 | 2.6% |
| AHF, LLC* | Distribution & Warehouse/Manufacturing | 8 | 9,612 | 2.4% | 2,284 | 5.7% |
| Joseph T. Ryerson & Son, Inc | Distribution & Warehouse | 11 | 8,025 | 2.0% | 1,599 | 4.0% |
| Jack’s Family Restaurants LP* | Quick Service Restaurants | 43 | 7,605 | 1.9% | 147 | 0.4% |
| Dollar General Corporation | General Merchandise | 64 | 6,597 | 1.6% | 609 | 1.5% |
| Tractor Supply Company | General Merchandise | 23 | 6,473 | 1.6% | 462 | 1.2% |
| J. Alexander’s, LLC* | Casual Dining | 16 | 6,300 | 1.6% | 132 | 0.4% |
| Nestle’ Dreyer's Ice Cream Company | Cold Storage | 2 | 6,259 | 1.6% | 503 | 1.3% |
| Hensley & Company* | Distribution & Warehouse | 3 | 6,231 | 1.6% | 577 | 1.3% |
| Total Top 10 Tenants | 178 | 87,724 | 21.9% | 9,579 | 24.1% | |
| Salm Partners, LLC* | Food Processing | 2 | 6,169 | 1.5% | 426 | 1.1% |
| Axcelis Technologies, Inc. | Flex and R&D | 1 | 5,900 | 1.5% | 417 | 1.0% |
| BluePearl Holdings, LLC** | Animal Services | 13 | 5,897 | 1.5% | 159 | 0.4% |
| Red Lobster Hospitality & Red Lobster Restaurants LLC* | Casual Dining | 18 | 5,563 | 1.4% | 147 | 0.4% |
| Outback Steakhouse of Florida LLC* (a) | Casual Dining | 22 | 5,543 | 1.4% | 138 | 0.2% |
| Krispy Kreme Doughnut Corporation | Quick Service Restaurants/Food Processing | 27 | 5,538 | 1.3% | 156 | 0.4% |
| Big Tex Trailer Manufacturing Inc.* | Automotive/Distribution & Warehouse/Manufacturing/Office | 17 | 5,260 | 1.2% | 1,303 | 3.4% |
| Arkansas Surgical Hospital, LLC | Clinical & Surgical | 1 | 4,702 | 1.2% | 129 | 0.3% |
| Carvana, LLC* | Industrial Services | 2 | 4,672 | 1.2% | 230 | 0.6% |
| Jelly Belly Candy Company | Distribution & Warehouse/Food Processing/General Merchandise | 5 | 4,650 | 1.2% | 576 | 1.4% |
| Total Top 20 Tenants | 286 | $141,618 | 35.3% | 13,260 | 33.3% |
(a) Tenant’s properties include 20 Outback Steakhouse restaurants and two Carrabba’s Italian Grill restaurants.
*Subject to a master lease.
** Includes properties leased by multiple tenants, some, not all, of which are subject to master leases.
Diversification by Industry
| Tenant Industry | # of Properties | ABR (’000s) | ABR as a % of Total Portfolio | Square Feet(’000s) | SF as a % of Total Portfolio |
|---|---|---|---|---|---|
| Restaurants | 258 | $55,390 | 13.8% | 1,231 | 3.1% |
| Packaged Foods & Meats | 36 | 51,065 | 12.7% | 5,873 | 14.8% |
| Food Distributors | 7 | 27,431 | 6.8% | 2,534 | 6.4% |
| Healthcare Facilities | 45 | 23,368 | 5.8% | 824 | 2.1% |
| Auto Parts & Equipment | 46 | 20,948 | 5.2% | 3,168 | 8.0% |
| Specialty Stores | 37 | 19,385 | 4.8% | 1,696 | 4.3% |
| Distributors | 27 | 17,990 | 4.5% | 2,757 | 6.9% |
| Home Furnishing Retail | 17 | 12,281 | 3.1% | 1,692 | 4.3% |
| Specialized Consumer Services | 46 | 12,182 | 3.0% | 716 | 1.8% |
| Metal & Glass Containers | 8 | 10,813 | 2.7% | 2,206 | 5.5% |
| General Merchandise Stores | 100 | 10,428 | 2.6% | 928 | 2.3% |
| Industrial Machinery | 20 | 10,080 | 2.5% | 1,949 | 4.9% |
| Forest Products | 8 | 9,612 | 2.4% | 2,284 | 5.7% |
| Healthcare Services | 17 | 9,578 | 2.4% | 507 | 1.3% |
| Electronic Components | 2 | 6,765 | 1.7% | 466 | 1.2% |
| Other (40 industries) | 93 | 104,013 | 26.0% | 10,590 | 26.5% |
| Untenanted properties | 2 | — | — | 344 | 0.9% |
| Total | 769 | $401,329 | 100.0% | 39,765 | 100.0% |
Diversification by Geographic Location
| State/Province · # ofProperties · ABR(’000s) · ABR as a % of Total Portfolio · Square Feet (’000s) · SF as a % of Total Portfolio · State/Province · # ofProperties · ABR(’000s) · ABR as a % of Total Portfolio · Square Feet (’000s) · SF as a % of Total Portfolio | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| TX | 65 | $38,385 | 9.6% | 3,643 | 9.2% | MS | 12 | 4,132 | 1.0% | 607 | 1.5% | |||
| MI | 52 | 36,470 | 9.1% | 4,019 | 10.1% | LA | 5 | 3,833 | 1.0% | 211 | 0.5% | |||
| FL | 30 | 26,330 | 6.6% | 1,661 | 4.3% | SC | 15 | 3,555 | 0.9% | 323 | 0.8% | |||
| CA | 17 | 24,362 | 6.1% | 2,282 | 5.7% | NE | 6 | 3,364 | 0.8% | 509 | 1.3% | |||
| IL | 29 | 22,774 | 5.7% | 2,364 | 5.9% | WA | 14 | 3,350 | 0.8% | 148 | 0.4% | |||
| WI | 30 | 19,496 | 4.9% | 1,945 | 4.9% | IA | 4 | 2,922 | 0.7% | 622 | 1.6% | |||
| OH | 49 | 16,719 | 4.2% | 1,584 | 4.0% | NM | 9 | 2,751 | 0.7% | 107 | 0.3% | |||
| MN | 21 | 16,087 | 4.0% | 2,500 | 6.3% | UT | 3 | 2,749 | 0.7% | 280 | 0.7% | |||
| TN | 48 | 15,183 | 3.8% | 1,084 | 2.7% | CO | 4 | 2,589 | 0.6% | 126 | 0.3% | |||
| IN | 28 | 14,130 | 3.5% | 1,852 | 4.7% | MD | 3 | 2,152 | 0.5% | 205 | 0.5% | |||
| PA | 23 | 12,895 | 3.2% | 2,169 | 5.5% | CT | 2 | 1,898 | 0.5% | 55 | 0.1% | |||
| AL | 52 | 12,395 | 3.1% | 863 | 2.2% | MT | 7 | 1,728 | 0.4% | 43 | 0.1% | |||
| GA | 34 | 12,125 | 3.0% | 1,576 | 4.0% | DE | 4 | 1,162 | 0.3% | 133 | 0.3% | |||
| NC | 29 | 10,591 | 2.6% | 1,038 | 2.6% | ND | 2 | 1,057 | 0.3% | 24 | 0.1% | |||
| KY | 23 | 9,258 | 2.3% | 927 | 2.3% | VT | 2 | 432 | 0.1% | 24 | 0.1% | |||
| OK | 25 | 9,020 | 2.2% | 1,006 | 2.5% | WY | 1 | 338 | 0.1% | 21 | 0.1% | |||
| MO | 19 | 8,941 | 2.2% | 1,260 | 3.2% | NV | 1 | 276 | 0.1% | 6 | 0.0% | |||
| AZ | 7 | 8,915 | 2.2% | 747 | 1.9% | OR | 1 | 135 | 0.0% | 9 | 0.0% | |||
| NY | 28 | 7,319 | 1.8% | 562 | 1.4% | SD | 1 | 80 | 0.0% | 9 | 0.0% | |||
| AR | 9 | 6,675 | 1.7% | 277 | 0.7% | Total U.S. | 762 | $393,575 | 98.1% | 39,336 | 99.0% | |||
| MA | 3 | 6,332 | 1.6% | 444 | 1.1% | BC | 2 | 4,555 | 1.1% | 253 | 0.5% | |||
| KS | 10 | 5,580 | 1.4% | 643 | 1.6% | ON | 3 | 1,953 | 0.5% | 101 | 0.3% | |||
| WV | 17 | 5,115 | 1.3% | 884 | 2.2% | AB | 1 | 918 | 0.2% | 51 | 0.1% | |||
| VA | 15 | 5,057 | 1.3% | 178 | 0.4% | MB | 1 | 328 | 0.1% | 24 | 0.1% | |||
| NJ | 3 | 4,918 | 1.2% | 366 | 0.9% | Total Canada | 7 | $7,754 | 1.9% | 429 | 1.0% | |||
| Grand Total | 769 | $401,329 | 100.0% | 39,765 | 100.0% | |||||||||
Our Leases
The following chart sets forth our lease expirations based upon the terms of the leases in place as of March 31, 2025.
The following table presents certain information based on lease expirations by year:
| Year | # of Properties | # of Leases | ABR (’000s) | ABR as a % of Total Portfolio | Square Feet (’000s) | SF as a % of Total Portfolio |
|---|---|---|---|---|---|---|
| 2025 | 14 | 15 | $4,188 | 1.0% | 228 | 0.6% |
| 2026 | 23 | 24 | 11,914 | 3.0% | 915 | 2.3% |
| 2027 | 29 | 30 | 25,865 | 6.4% | 2,257 | 5.7% |
| 2028 | 28 | 28 | 19,916 | 5.0% | 1,793 | 4.5% |
| 2029 | 60 | 35 | 18,410 | 4.6% | 2,587 | 6.5% |
| 2030 | 87 | 52 | 48,799 | 12.2% | 4,780 | 12.0% |
| 2031 | 31 | 26 | 8,185 | 2.0% | 835 | 2.1% |
| 2032 | 61 | 46 | 32,665 | 8.1% | 3,481 | 8.8% |
| 2033 | 49 | 23 | 19,007 | 4.7% | 1,409 | 3.5% |
| 2034 | 38 | 27 | 14,450 | 3.6% | 1,245 | 3.1% |
| 2035 | 20 | 16 | 15,221 | 3.8% | 2,116 | 5.3% |
| 2036 | 89 | 23 | 29,848 | 7.4% | 2,877 | 7.2% |
| 2037 | 27 | 13 | 26,760 | 6.7% | 2,203 | 5.5% |
| 2038 | 39 | 35 | 13,813 | 3.4% | 1,226 | 3.1% |
| 2039 | 15 | 11 | 22,637 | 5.6% | 1,805 | 4.5% |
| 2040 | 31 | 5 | 6,029 | 1.5% | 312 | 0.8% |
| 2041 | 39 | 8 | 16,969 | 4.2% | 1,367 | 3.4% |
| 2042 | 58 | 13 | 44,099 | 11.0% | 4,803 | 12.1% |
| 2043 | 11 | 4 | 9,167 | 2.3% | 564 | 1.4% |
| 2044 | 3 | 3 | 1,660 | 0.4% | 103 | 0.3% |
| Thereafter | 10 | 3 | 11,727 | 3.1% | 2,515 | 6.4% |
| Total leased properties | 762 | 440 | 401,329 | 100.0% | 39,421 | 99.1% |
| In-process developments | 5 | 5 | — | — | — | — |
| Untenanted properties | 2 | — | — | — | 344 | 0.9% |
| Total properties | 769 | 445 | $401,329 | 100.0% | 39,765 | 100.0% |
Substantially all of our leases provide for periodic contractual rent escalations. As of March 31, 2025, leases contributing 97.5% of our ABR provided for increases in future ABR, generally ranging from 1.5% to 3.0% annually, with an ABR weighted average annual increase equal to 2.0% of base rent. Generally, our rent escalators increase rent on specified dates by a fixed percentage. Our escalations provide us with a source of organic revenue growth and a measure of inflation protection. Additional information on lease escalation frequency and weighted average annual escalation rates as of March 31, 2025 is displayed below:
| Lease Escalation Frequency | % of ABR | Weighted Average Annual Increase (a) |
|---|---|---|
| Annually | 79.4% | 2.2% |
| Every 2 years | 0.1% | 1.8% |
| Every 3 years | 2.3% | 2.9% |
| Every 4 years | 1.0% | 2.4% |
| Every 5 years | 8.4% | 1.6% |
| Every 6 years | 0.1% | 1.7% |
| Other escalation frequencies | 6.2% | 1.5% |
| Flat (b) | 2.5% | — |
| Total/ABR Weighted Average | 100.0% | 2.0% |
(a)
Represents the ABR weighted average annual increase of the entire portfolio as if all escalations occurred annually. For leases where rent escalates by the greater of a stated fixed percentage or the change in CPI, we have assumed an escalation equal to the stated fixed percentage in the lease. As of March 31, 2025, leases contributing 4.8% of our ABR provide for rent increases equal to the lesser of a stated fixed percentage or the change in CPI. As any future increase in CPI is unknowable at this time, we have not included an increase in the rent pursuant to these leases in the weighted average annual increase presented.
(b)
Generally associated with investment grade retail tenants.
The escalation provisions of our leases (by percentage of ABR) as of March 31, 2025, are displayed in the following chart:
Transitional Capital
In addition to investing in new property acquisitions, revenue generating capital expenditures, and build-to-suit developments, we may, from time to time, invest in transitional capital opportunities, including preferred equity interests and real estate lending opportunities. Such investments are intended to be shorter in duration, offering an alternative source of financing.
The following table presents our transitional capital investments at March 31, 2025:
| Transitional Capital: | |
|---|---|
| Type | Preferred Equity |
| Investment (’000s) (a) | $52,200 |
| Stabilized cash capitalization rate (b) | 8.0% |
| Annualized initial cash NOI yield | 7.6% |
| Remaining term (years) (c) | 2.3 |
| Property type | Retail Center |
| Underlying property metrics | |
| Number of retail spaces | 28 |
| Rentable square footage (“SF”) (’000s) | 332 |
| Weighted average remaining lease term (years) | 4.0 |
| Occupancy rate (based on SF) (d) | 95.2% |
| Quarterly rent collection | 100.0% |
(a)
Agreement includes commitment to fund up to an additional $7.8 million of preferred capital.
(b)
Represents stated yield with unpaid amounts accruing with preferential payment.
(c)
Agreement contains two one-year extension options subject to a 0.50% extension fee. Repayment at end of term subject to a $3.5 million repayment fee.
(d)
Includes leases that have been executed but rent has not yet commenced.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.