Broadstone Net Lease 8K Announces First Quarter 2022 Results | BNL 3 May 22

Exhibit 99.2

Q1 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	14
Debt Maturities	15
Acquisitions	16
Dispositions	16
Portfolio at a Glance: Key Metrics	17
Diversification: Tenants and Brands	18-19
Diversification: Property Type	20-21
Key Statistics by Property Type	22
Diversification: Tenant Industry	23
Diversification: Geography	24
Lease Expirations	25
Portfolio Occupancy	26
Definitions and Explanations	27-28

About the Data

This data and other information described herein are as of and for the three months ended March 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 Quarterly Report on Form 10-Q for the three months ended March 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 the COVID-19 pandemic and its related impacts on us and our tenants, 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 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

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

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

David M. Jacobstein

Agha S. Khan

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)


	Q1 2022			Q4 2021			Q3 2021			Q2 2021			Q1 2021
Financial Summary
Investment in rental property	$	4,431,929		$	4,234,544		$	4,110,958		$	3,954,597		$	3,794,850
Less accumulated depreciation		(454,122	)		(430,141	)		(407,354	)		(390,236	)		(369,683	)
Investment in rental property, net		3,977,807			3,804,403			3,703,604			3,564,361			3,425,167
Cash and cash equivalents		54,103			21,669			16,182			78,987			10,205
Restricted cash		11,444			6,100			3,895			8,021			8,145
Total assets		4,852,520			4,618,648			4,501,972			4,423,611			4,206,045
Unsecured revolving credit facility		266,118			102,000			—			—			15,000
Mortgage, net		96,141			96,846			97,530			105,748			106,559
Unsecured term loans, net		586,884			646,671			646,458			910,994			910,732
Senior unsecured notes, net		843,990			843,801			843,665			472,637			472,551
Total liabilities		1,961,200			1,877,510			1,785,847			1,700,103			1,713,348
Total Broadstone Net Lease, Inc. stockholders' equity		2,724,641			2,577,292			2,552,004			2,554,653			2,312,532
Total equity (book value)		2,891,320			2,741,138			2,716,125			2,723,508			2,492,697

Revenues		93,841			92,642			122,777			84,759			82,698
General and administrative - other		7,899			7,501			7,628			7,704			8,864
Stock based compensation		929			1,025			924			951			1,769
General and administrative		8,828			8,526			8,552			8,655			10,633
Total operating expenses		48,162			46,649			76,065			44,452			47,963
Interest expense		16,896			16,997			15,611			15,430			16,108
Net income		28,441			32,226			30,522			22,820			23,960
Net earnings per common share, diluted	$	0.16		$	0.19		$	0.18		$	0.14		$	0.15

FFO		61,504			62,152			91,947			50,184			51,929
FFO per share, diluted	$	0.35		$	0.36		$	0.54		$	0.32		$	0.33
Core FFO		64,076			62,232			59,769			55,816			52,606
Core FFO per share, diluted	$	0.37		$	0.36		$	0.35		$	0.35		$	0.33
AFFO		60,401			58,692			55,836			52,024			49,410
AFFO per share, diluted	$	0.35		$	0.34		$	0.33		$	0.33		$	0.31

Net cash provided by operating activities		59,104			57,619			88,303			47,235			51,780
Net cash (used in) provided by investing activities		(207,678	)		(133,925	)		(205,667	)		(175,051	)		(67,661	)
Net cash provided by (used in) financing activities		186,352			83,998			50,433			196,474			(76,497	)
Distributions declared		48,115			45,857			43,423			43,484			39,653
Distributions declared per diluted share	$	0.265		$	0.265		$	0.255		$	0.255		$	0.250

Portfolio Metrics
Properties		752			726			696			684			661
Rentable square feet	32.8M			32.2M			31.4M			30.2M			28.4M
Occupancy		99.8	%		99.8	%		99.8	%		99.7	%		99.7	%
Weighted average remaining lease term (years)		10.5			10.5			10.6			10.4			10.6

Balance Sheet

(unaudited, in thousands)


	March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Assets
Accounted for using the operating method:
Land	$	709,962		$	655,374		$	616,917		$	597,779		$	572,381
Land improvements		300,300			295,329			291,045			291,981			282,426
Buildings and improvements		3,381,990			3,242,618			3,161,728			3,023,490			2,898,615
Equipment		10,422			11,870			11,870			11,870			11,870
Total accounted for using the operating method		4,402,674			4,205,191			4,081,560			3,925,120			3,765,292
Less accumulated depreciation		(454,122	)		(430,141	)		(407,354	)		(390,236	)		(369,683	)
Accounted for using the operating method, net		3,948,552			3,775,050			3,674,206			3,534,884			3,395,609
Accounted for using the direct financing method		28,684			28,782			28,830			28,911			28,991
Accounted for using the sales-type method		571			571			568			566			567
Investment in rental property, net		3,977,807			3,804,403			3,703,604			3,564,361			3,425,167
Cash and cash equivalents		54,103			21,669			16,182			78,987			10,205
Accrued rental income		120,117			116,874			112,163			109,278			105,674
Tenant and other receivables, net		1,160			1,310			940			618			1,022
Prepaid expenses and other assets		22,525			17,275			13,819			18,846			18,862
Interest rate swap, assets		8,944			—			—			—			239
Goodwill		339,769			339,769			339,769			339,769			339,769
Intangible lease assets, net		311,277			303,642			301,046			296,134			288,592
Debt issuance costs – unsecured revolving credit facility, net		7,427			4,065			4,658			5,250			5,842
Leasing fees, net		9,391			9,641			9,791			10,368			10,673
Total assets	$	4,852,520		$	4,618,648		$	4,501,972		$	4,423,611		$	4,206,045
Liabilities and equity
Unsecured revolving credit facility	$	266,118		$	102,000		$	—		$	—		$	15,000
Mortgages, net		96,141			96,846			97,530			105,748			106,559
Unsecured term loans, net		586,884			646,671			646,458			910,994			910,732
Senior unsecured notes, net		843,990			843,801			843,665			472,637			472,551
Interest rate swap, liabilities		1,154			27,171			36,196			46,335			43,662
Earnout liability		—			—			—			10,063			6,385
Accounts payable and other liabilities		40,611			38,038			35,732			32,279			31,743
Dividends payable		47,682			45,914			43,874			43,184			39,329
Accrued interest payable		9,845			6,473			9,895			3,885			9,896
Intangible lease liabilities, net		68,775			70,596			72,497			74,978			77,491
Total liabilities		1,961,200			1,877,510			1,785,847			1,700,103			1,713,348
Equity
Broadstone Net Lease, Inc. stockholders' equity:
Preferred stock, $0.001 par value		—			—			—			—			—
Common stock, $0.00025 par value		42			41			40			40			36
Additional paid-in capital		3,056,560			2,924,168			2,895,219			2,890,131			2,625,320
Cumulative distributions in excess of retained earnings		(336,988	)		(318,476	)		(305,665	)		(293,622	)		(274,140	)
Accumulated other comprehensive loss		5,027			(28,441	)		(37,590	)		(41,896	)		(38,684	)
Total Broadstone Net Lease, Inc. stockholders’ equity		2,724,641			2,577,292			2,552,004			2,554,653			2,312,532
Non-controlling interests		166,679			163,846			164,121			168,855			180,165
Total equity		2,891,320			2,741,138			2,716,125			2,723,508			2,492,697
Total liabilities and equity	$	4,852,520		$	4,618,648		$	4,501,972		$	4,423,611		$	4,206,045

Income Statement Summary

(unaudited, in thousands, except per share data)


	Three Months Ended
	March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Revenues
Lease revenues, net	$	93,841		$	92,642		$	122,777		$	84,759		$	82,698
Operating expenses
Depreciation and amortization		34,290			33,476			36,682			31,225			30,713
Property and operating expense		5,044			4,440			4,842			4,572			4,605
General and administrative		8,828			8,526			8,552			8,655			10,633
Provision for impairment of investment in rental properties		—			207			25,989			—			2,012
Total operating expenses		48,162			46,649			76,065			44,452			47,963
Other income (expenses)
Interest income		—			6			—			6			5
Interest expense		(16,896	)		(16,997	)		(15,611	)		(15,430	)		(16,108	)
Cost of debt extinguishment		—			—			(242	)		—			(126	)
Gain on sale of real estate		1,196			3,732			1,220			3,838			4,733
Income taxes		(412	)		(457	)		(473	)		(301	)		(413	)
Change in fair value of earnout liability		—			—			(1,059	)		(5,604	)		1,124
Other (expenses) income		(1,126	)		(51	)		(25	)		4			10
Net income		28,441			32,226			30,522			22,820			23,960
Net income attributable to non-controlling interests		(1,683	)		(1,935	)		(1,824	)		(1,606	)		(1,737	)
Net income attributable to Broadstone Net Lease, Inc.	$	26,758		$	30,291		$	28,698		$	21,214		$	22,223

Weighted average number of common shares outstanding
Basic1		163,809			161,545			159,226			146,119			145,338
Diluted1		174,288			172,094			169,587			157,430			156,724
Net earnings per common share2
Basic and diluted	$	0.16		$	0.19		$	0.18		$	0.14		$	0.15

1 Excludes 370,539, 373,678, 378,244, 386,772, and 334,413 weighted average shares of unvested restricted common stock for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively.

2 Excludes $0.1 million from the numerator for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 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
	March 31, 2022				December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Net income	$	28,441			$	32,226		$	30,522		$	22,820		$	23,960
Real property depreciation and amortization		34,259				33,451			36,656			31,202			30,690
Gain on sale of real estate		(1,196	)			(3,732	)		(1,220	)		(3,838	)		(4,733	)
Provision for impairment of investment in rental properties		—				207			25,989			—			2,012
FFO	$	61,504			$	62,152		$	91,947		$	50,184		$	51,929
Net write-offs of accrued rental income		1,326				—			1,496			—			442
Lease termination fee		—				—			(35,000	)		—			—
Cost of debt extinguishment		—				—			242			—			126
Severance		120				29			—			32			1,243
Change in fair value of earnout liability		—				—			1,059			5,604			(1,124	)
Other expenses (income)		1,126		1		51			25			(4	)		(10	)
Core FFO	$	64,076			$	62,232		$	59,769		$	55,816		$	52,606
Straight-line rent adjustment		(4,934	)			(5,321	)		(4,930	)		(4,979	)		(5,074	)
Adjustment to provision for credit losses		—				(37	)		—			—			(1	)
Amortization of debt issuance costs		856				1,022			962			956			914
Amortization of net mortgage premiums		(27	)			(26	)		(34	)		(37	)		(35	)
Loss (gain) on interest rate swaps and other non-cash interest expense		659				696			85			(42	)		(41	)
Amortization of lease intangibles		(1,158	)			(899	)		(940	)		(641	)		(728	)
Stock-based compensation		929				1,025			924			951			1,769
AFFO	$	60,401			$	58,692		$	55,836		$	52,024		$	49,410

Diluted weighted average shares outstanding2		174,288				172,094			169,587			157,430			156,724
Net earnings per diluted share3	$	0.16			$	0.19		$	0.18		$	0.14		$	0.15
FFO per diluted share3		0.35				0.36			0.54			0.32			0.33
Core FFO per diluted share3		0.37				0.36			0.35			0.35			0.33
AFFO per diluted share3		0.35				0.34			0.33			0.33			0.31

1 Amount includes $1.1 million of unrealized foreign exchange loss, primarily associated with our Canadian dollar denominated revolving borrowings.

2 Excludes 370,539, 373,678, 378,244, 386,772, and 334,413 weighted average shares of unvested restricted common stock for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively.

3 Excludes $0.1 million from the numerator for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 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
	March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Net income	$	28,441		$	32,226		$	30,522		$	22,820		$	23,960
Depreciation and amortization		34,290			33,476			36,682			31,225			30,713
Interest expense		16,896			16,997			15,611			15,430			16,108
Income taxes		412			457			473			301			413
EBITDA	$	80,039		$	83,156		$	83,288		$	69,776		$	71,194
Provision for impairment of investment in rental properties		—			207			25,989			—			2,012
Gain on sale of real estate		(1,196	)		(3,732	)		(1,220	)		(3,838	)		(4,733	)
EBITDAre	$	78,843		$	79,631		$	108,057		$	65,938		$	68,473
Adjustment for current quarter acquisition activity 1		4,374			2,002			3,534			2,761			1,365
Adjustment for current quarter disposition activity 2		(79	)		(180	)		(1,387	)		(353	)		(278	)
Adjustment to exclude non-recurring and other expenses 3		—			—			—			—			2,100
Adjustment to exclude change in fair value of earnout liability		—			—			1,059			5,604			(1,124	)
Adjustment to exclude net write-offs of accrued rental income		1,326			—			1,496			—			442
Adjustment to exclude realized / unrealized foreign exchange loss		1,125			—			—			—			—
Adjustment to exclude cost of debt extinguishments		—			—			242			—			126
Adjustment to exclude lease termination fees		—			—			(35,000	)		—			—
Adjusted EBITDAre	$	85,589		$	81,453		$	78,001		$	73,950		$	71,104
General and administrative		8,825			8,523			8,537			8,650			10,632
Adjusted Net Operating Income ("NOI")	$	94,414		$	89,976		$	86,538		$	82,600		$	81,736
Straight-line rental revenue, net		(5,456	)		(5,611	)		(5,789	)		(5,245	)		(4,762	)
Other amortization and non-cash charges		(1,157	)		(847	)		(616	)		(642	)		(737	)
Adjusted Cash NOI	$	87,801		$	83,518		$	80,133		$	76,713		$	76,237
Annualized EBITDAre	$	315,375		$	318,526		$	432,221		$	263,761		$	273,888
Annualized Adjusted EBITDAre		342,356			325,812			311,998			295,808			284,414
Annualized Adjusted NOI		377,657			359,904			346,145			330,410			326,944
Annualized Adjusted Cash NOI		351,202			334,072			320,524			306,863			304,948

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 during the three months ended March 31, 2021.

Lease Revenues Detail

(unaudited, in thousands)


	Three Months Ended
	March 31, 2022			December 31, 2021		September 30, 2021		June 30, 2021			March 31, 2021
Contractual rental amounts billed for operating leases	$	84,396		$	81,482	$	78,886	$	75,011		$	73,245
Adjustment to recognize contractual operating lease billings on a straight- line basis		5,021			5,372		4,942		4,724			4,809
Net write-offs of accrued rental income		(1,326	)		—		—		—			(442	)
Variable rental amounts earned		186			433		130		114			91
Earned income from direct financing leases		723			725		726		728			730
Interest income from sales-type leases		14			15		14		15			14
Operating expenses billed to tenants		4,735			4,464		4,414		4,196			4,388
Other income from real estate transactions		42			1		33,515		28			5
Adjustment to revenue recognized for uncollectible rental amounts billed, net		50			150		150		(57	)		(142	)
Total Lease revenues, net	$	93,841		$	92,642	$	122,777	$	84,759		$	82,698

Capital Structure

(unaudited, in thousands, except per share data)


EQUITY
Shares of Common Stock		168,750
OP Units		10,323
Common Stock & OP Units		179,073
Price Per Share / Unit at March 31, 2022	$	21.78
IMPLIED EQUITY MARKET CAPITALIZATION	$	3,900,218
% of Total Capitalization		68.4	%
DEBT
Unsecured Revolving Credit Facility - 2026	$	266,118
Unsecured Term Loan Facilities		590,000
Unsecured Term Loan - 2024		190,000
Unsecured Term Loan - 2026		400,000
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 Notes - 2031		375,000
Mortgage Debt - Various		96,434
TOTAL DEBT	$	1,802,552
% of Total Capitalization		31.6	%
% of Total Debt Floating Rate Debt		8.0	%
% of Total Debt Fixed Rate Debt		92.0	%
% of Total Debt Secured Debt		5.3	%
% of Total Debt Unsecured Debt		94.7	%

Total Capitalization	$	5,702,770
Less: Cash and Cash Equivalents		(54,103	)
Enterprise Value	$	5,648,667

Equity Rollforward

(unaudited, in thousands)


	Shares of Common Stock			OP Units			Total Diluted Shares
Balance, January 1, 2022		162,383			10,323			172,706
ATM offering		6,273			—			6,273
Board of directors fees		12			—			12
Grants of restricted stock awards		142			—			142
Retirement of restricted stock awards		(59	)		—			(59	)
Forfeiture of restricted stock awards		(1	)		—			(1	)
Balance, March 31, 2022		168,750			10,323			179,073
Percentage ownership of OP at March 31, 2022		94.2	%		5.8	%		100	%

Debt Outstanding

(unaudited, in thousands)


	Outstanding Balance
	March 31,			December 31,
	2022			2021			Interest Rate	Maturity Date
Unsecured revolving credit facility	$	266,118		$	102,000		Applicable reference rate + 0.85%	Mar. 2026
Unsecured term loans:
2022 Unsecured Term Loan		—			60,000		one-month LIBOR + 1.00%	Feb. 2022
2024 Unsecured Term Loan		190,000			190,000		one-month LIBOR + 1.00%	Jun. 2024
2026 Unsecured Term Loan		400,000			400,000		one-month LIBOR + 1.00%	Feb. 2026
Total unsecured term loans		590,000			650,000
Unamortized debt issuance costs, net		(3,116	)		(3,329	)
Total unsecured term loans, net		586,884			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		(6,010	)		(6,199	)
Total senior unsecured notes, net		843,990			843,801
Total unsecured debt, net	$	1,696,992		$	1,592,472


	Origination	Maturity
	Date	Date	Interest	March 31,			December 31,
Lender	(Month/Year)	(Month/Year)	Rate	2022			2021
Wilmington Trust National Association	Apr-19	Feb-28	4.92%	$	46,447		$	46,760
Wilmington Trust National Association	Jun-18	Aug-25	4.36%		19,454			19,557
PNC Bank	Oct-16	Nov-26	3.62%		16,989			17,094
T2 Durham I, LLC	Jul - 21	Jul -24	Greater of Prime + 1.25% or 5.00%		7,500			7,500
Aegon	Apr-12	Oct-23	6.38%		6,044			6,249
Total mortgages					96,434			97,160
Debt issuance costs, net					(293	)		(314	)
Mortgages, net				$	96,141		$	96,846


Year of Maturity	Revolving Credit Facility		Term Loans		Senior Notes		Mortgages		Total
2022	$	—	$	—	$	—	$	2,180	$	2,180
2023		—		—		—		7,582		7,582
2024		—		190,000		—		9,760		199,760
2025		—		—		—		20,195		20,195
2026		266,118		400,000		—		16,843		682,961
Thereafter		—		—		850,000		39,874		889,874
Total	$	266,118	$	590,000	$	850,000	$	96,434	$	1,802,552

Net Debt Metrics

(unaudited, in thousands)



	March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Debt
Unsecured revolving credit facility	$	266,118		$	102,000		$	—		$	—		$	15,000
Unsecured term loans, net		586,884			646,671			646,458			910,994			910,732
Senior unsecured notes, net		843,990			843,801			843,665			472,637			472,551
Mortgages, net		96,141			96,846			97,530			105,748			106,559
Debt issuance costs		9,419			9,842			10,215			6,625			6,988
Gross Debt		1,802,552			1,699,160			1,597,868			1,496,004			1,511,830
Cash and cash equivalents		(54,103	)		(21,669	)		(16,182	)		(78,987	)		(10,205	)
Restricted cash		(11,444	)		(6,100	)		(3,895	)		(8,021	)		(8,145	)
Net Debt	$	1,737,005		$	1,671,391		$	1,577,791		$	1,408,996		$	1,493,480
Net Debt to Annualized EBITDAre	5.51x			5.25x			3.65x			5.34x			5.45x
Net Debt to Annualized Adjusted EBITDAre	5.07x			5.13x			5.06x			4.76x			5.25x

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. 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 March 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

Not Applicable

Unencumbered coverage ratio

≥ 1.75 to 1.00

7.23

Not Applicable

Fixed charge coverage ratio

≥ 1.50 to 1.00

4.27

Not Applicable

Total unsecured indebtedness to
total unencumbered eligible
property value

≤ 0.60 to 1.00

0.35

0.37

Not Applicable

Dividends and other restricted
payments

Only applicable
in case of default

Not Applicable

Aggregate debt ratio

≤ 0.60 to 1.00

Not Applicable

0.37

Consolidated income available for
debt to annual debt service
charge

≥ 1.50 to 1.00

Not Applicable

5.03

Total unencumbered assets to
total unsecured debt

≥ 1.50 to 1.00

Not Applicable

2.74

Secured debt ratio

≤ 0.40 to 1.00

Not Applicable

0.02

Debt Maturities

(unaudited, dollars in millions)

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

Portfolio Activity

Acquisitions

(unaudited, square feet and dollars in thousands)

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


QTD Q1 2022
Property Type	Number of Properties		Square Feet		Weighted Average Lease Term (years)		Weighted Average Annual Rent Increase			Acquisition Price
Restaurant		16		131		19.5		1.1	%	$	99,587
Retail		9		224		19.4		1.9	%		82,975
Industrial		2		264		18.5		2.1	%		27,411
Total Properties		27		619		19.3		1.5	%	$	209,973
Weighted average initial cash cap rate											5.7	%
Weighted average initial GAAP cap rate											6.4	%

Dispositions

(unaudited, square feet and dollars in thousands)

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


QTD 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	%

Portfolio at a Glance: Key Metrics


Properties	752
U.S. States	43
Canadian Provinces	4
Total Rentable Sq. Footage	32.8M
Tenants	210
Brands	198
Industries	56
Occupancy (based on SF)	99.8%
Top Ten Tenant Concentration	17.1%
Top Twenty Tenant Concentration	30.0%
Investment Grade (tenant/guarantor)	15.3%
Financial Reporting Coverage1	94.2%
Rent Coverage Ratio2	3.2x
Weighted Average Annual Rent Increases	2.0%
Weighted Average Remaining Lease Term	10.5 years

1 Includes 9.1% 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 Restaurant property type only.

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
Jack's Family Restaurants LP	Quick Service Restaurants		43	$	7,166		2.1	%		147		0.4	%
Red Lobster Hospitality & Red Lobster Restaurants LLC	Casual Dining		21		6,699		1.9	%		174		0.5	%
Joseph T. Ryerson & Son, Inc	Distribution & Warehouse		11		6,395		1.8	%		1,537		4.7	%
J. Alexander's, LLC	Casual Dining		16		6,025		1.7	%		131		0.4	%
Axcelis Technologies, Inc.	Flex and R&D		1		5,991		1.7	%		417		1.3	%
Hensley & Company	Distribution & Warehouse		3		5,871		1.7	%		577		1.8	%
BluePearl Holdings, LLC	Animal Health Services		13		5,444		1.6	%		165		0.5	%
Dollar General Corporation	General Merchandise		55		5,391		1.6	%		510		1.6	%
Outback Steakhouse of Florida LLC	Casual Dining		22		5,278		1.5	%		140		0.4	%
Tractor Supply Company	General Merchandise		21		5,269		1.5	%		417		1.3	%
Total Top 10 Tenants			206	$	59,529		17.1	%		4,215		12.9	%

Krispy Kreme Doughnut Corporation	Quick Service Restaurants/ Food Processing		27	$	5,034		1.4	%		156		0.5	%
Big Tex Trailer Manufacturing, Inc.	Automotive/Distribution & Warehouse/Manufacturing/ Corporate Headquarters		17		4,957		1.4	%		1,302		4.0	%
Siemens Medical Solutions USA, Inc. & Siemens Corporation	Manufacturing/Flex and R&D		2		4,936		1.4	%		545		1.7	%
Santa Cruz Valley Hospital	Healthcare Facilities		1		4,500		1.3	%		148		0.4	%
Nestle' Dreyer's Ice Cream Company	Cold Storage		1		4,476		1.3	%		310		0.9	%
Arkansas Surgical Hospital	Surgical		1		4,366		1.3	%		129		0.4	%
American Signature, Inc.	Home Furnishings		6		4,224		1.2	%		474		1.4	%
Cascade Aerospace Inc.	Manufacturing		1		4,150		1.2	%		231		0.7	%
MEC Mountain Equipment Company Ltd.	General Merchandise		6		4,147		1.2	%		199		0.6	%
Aventiv Technologies, LLC	Corporate Headquarters		1		3,896		1.2	%		154		0.5	%
Total Top 20 Tenants			269	$	104,215		30.0	%		7,863		24.0	%

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
Jack's Family Restaurants	Quick Service Restaurants		43	$	7,166		2.1	%		147		0.4	%
Red Lobster	Casual Dining		21		6,699		1.9	%		174		0.5	%
Ryerson	Distribution & Warehouse		11		6,395		1.8	%		1,537		4.7	%
Axcelis	Flex and R&D		1		5,991		1.7	%		417		1.3	%
Hensley	Distribution & Warehouse		3		5,871		1.7	%		577		1.8	%
BluePearl Veterinary Partners	Animal Health Services		13		5,444		1.6	%		165		0.5	%
Dollar General	General Merchandise		55		5,391		1.6	%		510		1.6	%
Bob Evans Farms	Casual Dining/Food Processing		21		5,285		1.5	%		281		0.8	%
Tractor Supply Co.	General Merchandise		21		5,269		1.5	%		417		1.3	%
Krispy Kreme	Quick Service Restaurants/ Food Processing		27		5,034		1.4	%		156		0.5	%
Total Top 10 Brands			216	$	58,545		16.8	%		4,381		13.4	%

Big Tex Trailers	Automotive/Distribution & Warehouse/Manufacturing/ Corporate Headquarters		17	$	4,957		1.4	%		1,302		4.0	%
Siemens	Manufacturing/Flex and R&D		2		4,936		1.4	%		545		1.7	%
Outback Steakhouse	Casual Dining		20		4,566		1.4	%		126		0.4	%
Wendy's	Quick Service Restaurants		31		4,554		1.3	%		89		0.3	%
Santa Cruz Valley Hospital	Healthcare Facilities		1		4,500		1.3	%		148		0.4	%
Nestle'	Cold Storage		1		4,476		1.3	%		310		0.9	%
Arkansas Surgical Hospital	Surgical		1		4,366		1.3	%		129		0.4	%
Value City Furniture	Home Furnishings		6		4,224		1.2	%		474		1.4	%
Taco Bell	Quick Service Restaurants		31		4,172		1.2	%		80		0.2	%
Cascade Aerospace	Manufacturing		1		4,150		1.2	%		231		0.7	%
Total Top 20 Brands			327	$	103,446		29.8	%		7,815		23.8	%

Diversification: Property Type

(unaudited, rent percentages based on ABR)

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		64	$	50,797		14.6	%		9,147		27.9	%
Distribution & Warehouse		45		49,015		14.1	%		9,221		28.1	%
Food Processing		17		22,881		6.6	%		2,636		8.0	%
Flex and R&D		7		17,296		5.0	%		1,457		4.4	%
Cold Storage		4		12,702		3.6	%		933		2.9	%
Services		21		8,548		2.5	%		487		1.5	%
Industrial Total		158		161,239		46.4	%		23,881		72.8	%
Healthcare
Clinical		51		25,735		7.4	%		1,049		3.2	%
Healthcare Services		28		12,511		3.6	%		463		1.4	%
Animal Health Services		27		10,352		3.0	%		405		1.2	%
Surgical		12		10,226		2.9	%		329		1.0	%
Life Science		9		7,688		2.2	%		549		1.7	%
Untenanted		1		—		—			18		0.1	%
Healthcare Total		128		66,512		19.1	%		2,813		8.6	%
Restaurant
Casual Dining		102		27,008		7.8	%		683		2.1	%
Quick Service Restaurants		148		25,022		7.2	%		505		1.5	%
Restaurant Total		250		52,030		15.0	%		1,188		3.6	%
Retail
General Merchandise		120		22,784		6.5	%		1,633		5.0	%
Automotive		66		12,084		3.5	%		771		2.4	%
Home Furnishings		13		7,030		2.0	%		797		2.4	%
Untenanted		1		—		—			34		0.1	%
Retail Total		200		41,898		12.0	%		3,235		9.9	%
Office
Corporate Headquarters		7		10,429		3.0	%		679		2.0	%
Strategic Operations		5		9,691		2.8	%		615		1.9	%
Call Center		4		5,887		1.7	%		391		1.2	%
Office Total		16		26,007		7.5	%		1,685		5.1	%
Total		752	$	347,686		100.0	%		32,802		100.0	%

Key Statistics by Property Type


Industrial
Number of properties	158
Square feet (000s)	23,881
Weighted average lease term (years)	10.3
Weighted average annual rent escalation	2.0	%

Healthcare
Number of properties	128
Square feet (000s)	2,813
Weighted average lease term (years)	8.6
Weighted average annual rent escalation	2.2	%

Restaurants
Number of properties	250
Square feet (000s)	1,188
Weighted average lease term (years)	15.3
Weighted average annual rent escalation	1.9	%

Retail
Number of properties	200
Square feet (000s)	3,235
Weighted average lease term (years)	11.2
Weighted average annual rent escalation	1.6	%

Office
Number of properties	16
Square feet (000s)	1,685
Weighted average lease term (years)	6.3
Weighted average annual rent escalation	2.5	%

Diversification: Tenant Industry
(unaudited)


Industry	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
Healthcare Facilities		102	$	53,325		15.3	%		2,029		6.2	%
Restaurants		253		52,801		15.2	%		1,230		3.7	%
Packaged Foods & Meats		11		16,654		4.8	%		1,820		5.5	%
Distributors		26		14,690		4.2	%		2,561		7.8	%
Food Distributors		8		14,403		4.1	%		1,786		5.4	%
Specialty Stores		31		13,855		4.0	%		1,338		4.1	%
Auto Parts & Equipment		39		12,634		3.6	%		2,387		7.3	%
Specialized Consumer Services		47		12,116		3.5	%		722		2.2	%
Metal & Glass Containers		8		9,898		2.8	%		2,206		6.7	%
Healthcare Services		18		9,172		2.6	%		515		1.6	%
Home Furnishing		5		8,955		2.6	%		1,785		5.4	%
Home Furnishing Retail		16		8,845		2.5	%		1,149		3.5	%
Aerospace & Defense		7		8,818		2.5	%		952		2.9	%
General Merchandise Stores		85		8,442		2.4	%		765		2.3	%
Electronic Components		2		6,806		2.0	%		466		1.4	%
Other (41 industries)		92		96,272		27.9	%		11,039		33.8	%
Untenanted properties		2		—		—			52		0.2	%
Total		752	$	347,686		100.0	%		32,802		100.0	%

Diversification: Geography

(unaudited, 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		69	$	36,443		10.5	%		3,502		10.7	%	LA		4		3,400		1.0	%		194		0.6	%
IL		27		21,099		6.1	%		2,002		6.1	%	NE		6		3,029		0.9	%		509		1.6	%
WI		35		19,744		5.7	%		2,069		6.3	%	MD		4		2,966		0.8	%		293		0.9	%
MI		48		16,700		4.8	%		1,545		4.7	%	CO		5		2,796		0.8	%		134		0.4	%
FL		44		16,313		4.7	%		849		2.6	%	NM		8		2,783		0.8	%		96		0.3	%
OH		38		15,655		4.5	%		1,416		4.3	%	MS		8		2,772		0.8	%		334		1.0	%
CA		10		15,612		4.5	%		1,493		4.6	%	IA		4		2,754		0.8	%		622		1.9	%
MN		20		13,733		3.9	%		2,244		6.8	%	SC		13		2,494		0.7	%		308		0.9	%
AZ		9		13,213		3.8	%		909		2.8	%	WV		16		2,480		0.7	%		109		0.3	%
NC		35		13,023		3.7	%		1,308		4.0	%	UT		3		2,379		0.7	%		280		0.9	%
IN		29		12,812		3.7	%		1,759		5.4	%	CT		2		1,699		0.5	%		55		0.2	%
TN		48		12,111		3.5	%		565		1.7	%	MT		7		1,563		0.4	%		43		0.1	%
AL		52		11,843		3.4	%		863		2.6	%	NV		2		1,336		0.4	%		80		0.2	%
GA		31		11,124		3.2	%		1,555		4.7	%	DE		4		1,154		0.3	%		133		0.4	%
NY		26		10,660		3.0	%		680		2.1	%	ND		2		943		0.3	%		28		0.1	%
MA		5		10,456		3.0	%		1,026		3.1	%	VT		2		414		0.1	%		24		0.1	%
OK		21		7,583		2.2	%		977		3.0	%	WY		1		307		0.1	%		21		0.1	%
AR		11		7,548		2.2	%		283		0.9	%	SD		1		81		0.1	%		9		0.0	%
PA		16		6,960		2.0	%		1,026		3.1	%	Total US		745	$	339,389		97.6	%		32,372		98.7	%
KY		23		6,573		1.9	%		703		2.1	%	BC		2	$	4,776		1.4	%		253		0.8	%
KS		11		5,488		1.6	%		647		2.0	%	ON		3		2,150		0.6	%		101		0.3	%
VA		17		5,388		1.5	%		204		0.6	%	AB		1		1,010		0.3	%		51		0.1	%
NJ		3		4,904		1.4	%		366		1.1	%	MB		1		361		0.1	%		25		0.1	%
MO		10		4,822		1.4	%		959		2.9	%	Total Canada		7	$	8,297		2.4	%		430		1.3	%
WA		15		4,232		1.2	%		150		0.5	%	Grand Total		752	$	347,686		100.0	%		32,802		100.0	%

Lease Expirations

(unaudited, rent percentages based on ABR)


Expiration Year	# Properties		ABR ($'000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
2022		1	$	1,566		0.5	%		46		0.1	%
2023		7		5,387		1.5	%		538		1.6	%
2024		11		14,031		4.0	%		1,689		5.2	%
2025		20		8,468		2.4	%		698		2.1	%
2026		35		19,207		5.5	%		1,414		4.3	%
2027		28		23,482		6.8	%		2,019		6.2	%
2028		34		22,982		6.6	%		2,291		7.0	%
2029		71		21,988		6.3	%		2,711		8.3	%
2030		100		53,209		15.3	%		5,099		15.5	%
2031		31		7,991		2.3	%		707		2.2	%
2032		54		28,764		8.3	%		3,248		9.9	%
2033		50		18,795		5.4	%		1,950		5.9	%
2034		33		6,200		1.8	%		409		1.3	%
2035		16		11,728		3.4	%		1,552		4.7	%
2036		86		25,720		7.4	%		2,854		8.7	%
2037		24		17,763		5.1	%		1,369		4.2	%
2038		33		6,840		2.0	%		306		0.9	%
2039		12		9,145		2.6	%		933		2.8	%
2040		33		5,945		1.7	%		317		1.0	%
2041		40		18,815		5.4	%		1,637		5.0	%
Thereafter		31		19,660		5.7	%		963		2.9	%
Untenanted properties		2		—		—			52		0.2	%
Total		752	$	347,686		100.0	%		32,802		100.0	%

Portfolio Occupancy

(unaudited, based on square feet)

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 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, realized and 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, stock-based compensation, 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 property, 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" 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 (BNL) 8-KBroadstone Net Lease Announces First Quarter 2022 Results