Exhibit 99.2
Q2 2018 QUARTERLY SUPPLEMENTAL INFORMATION Broadstone Net Lease, Inc. is a publicly reporting, privately offered Real Estate Investment Trust (REIT) that acquires and holds freestanding, single-tenant, net-leased commercial properties. www.broadstone.com
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
Section | Page |
|
Company Overview | 4 | |
Quarterly Financial Summary | 5 | |
Income Statement Summary | 6 | |
Funds From Operations (FFO) | 7 | |
Adjusted Funds From Operations (AFFO) | 7 | |
Balance Sheet | 8 | |
Capital Structure | 9 | |
Equity Summary | 9 | |
Debt Outstanding | 10 | |
Debt Maturities and Interest Rate Exposure | 11 | |
Credit Facility and Notes Covenants | 12 | |
Acquisitions | 13 | |
Dispositions | 13 | |
Portfolio at a Glance: Key Metrics | 14 | |
Diversification: Tenants and Brands | 15 | |
Diversification: Property Type | 16 | |
Diversification: Tenant Industry | 16 | |
Diversification: Geography | 17 | |
Lease Expirations | 18 | |
Occupancy | 19 | |
Dividends | 19 | |
Disclosures | 20 | |
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| |
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| |
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| |
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| |
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| |
|
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BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 2 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
This data and other information described herein are as of and for the three months ended June 30, 2018 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 the financial statements and the Management's Discussion and Analysis of Financial Condition and Results of Operations sections contained in Broadstone Net Lease, Inc.'s (the "Company," "BNL," "us," "our" and "we") Annual Report on Form 10-K for the year ended December 31, 2017 and Quarterly Reports on Form 10-Q for the periods ended June 30, 2018, March 31, 2018, September 30, 2017 and June 30, 2017.
Forward Looking Statements
This information contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” or other similar words. Forward-looking statements involve known and unknown risks, which may cause the Company’s actual future results to differ materially from expected results, including risks related to general economic conditions, local real estate conditions, tenant financial health, property acquisitions and the timing of these acquisitions, and the availability of capital to finance planned growth, among others, as described in the Company’s filings with the Securities and Exchange Commission. Consequently, forward-looking statements should be regarded solely as reflections of our current operating plans and estimates as of the dates indicated. Actual operating results may differ materially from what is expressed or forecast herein. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 3 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
Broadstone Net Lease, Inc. is an externally managed REIT, formed as a Maryland corporation in 2007 to acquire and hold single-tenant, net-leased commercial real estate properties throughout the United States that are leased to the properties’ operators under long-term leases. We focus on real estate that is operated by a single tenant which is an integral part of the tenant’s business. Our diversified portfolio of real estate includes retail properties, such as quick service and casual dining restaurants, healthcare facilities, industrial manufacturing facilities, warehouse and distribution centers, and corporate offices, among others. We target properties with credit-worthy tenants that look to engage in a long-term lease relationship. Through long-term leases, our tenants are able to retain operational control of their critical locations, while conserving their capital to fund their fundamental business operations.
Senior Management Amy L. Tait Founder and Chairman of the Board Christopher J. Czarnecki Chief Executive Officer, President, and Director Sean T. Cutt Chief Investment Officer Ryan M. Albano Executive Vice President and Chief Financial Officer David E. Kasprzak Executive Vice President and Chief Business Development Officer John D. Moragne Executive Vice President, Chief Operating Officer, and Secretary Tim Dieffenbacher Senior Vice President and Chief Accounting Officer
|
| Board of Directors Amy L. Tait Founder and Chairman of Broadstone Real Estate, LLC Christopher J. Czarnecki Chief Executive Officer and President of Broadstone Real Estate, LLC
Geoffrey H. Rosenberger Lead Independent Director Shekar Narasimhan Independent Director James H. Watters Independent Director David M. Jacobstein Independent Director Laurie A. Hawkes Independent Director Thomas P. Lydon, Jr. Independent Director Agha S. Khan Director |
Corporate Office & Contact Information 800 Clinton Square
Transfer Agent Computershare Trust Company, N.A. 250 Royall Street Canton, Massachusetts 02021 800-736-3001 |
|
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 4 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
(unaudited, dollars in thousands, except per share data)
|
| Q2 2018 |
|
| Q1 2018 |
|
| Q4 2017 |
|
| Q3 2017 |
|
| Q2 2017 |
| |||||
Financial Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in rental property, net |
| $ | 2,415,399 |
|
| $ | 2,293,548 |
|
| $ | 2,227,758 |
|
| $ | 1,933,320 |
|
| $ | 1,816,900 |
|
Total assets |
|
| 2,815,258 |
|
|
| 2,681,669 |
|
|
| 2,578,756 |
|
|
| 2,244,099 |
|
|
| 2,138,177 |
|
Mortgage and notes payable, net |
|
| 86,242 |
|
|
| 67,097 |
|
|
| 67,832 |
|
|
| 57,883 |
|
|
| 67,705 |
|
Unsecured term notes, net and revolver |
|
| 1,199,864 |
|
|
| 1,154,159 |
|
|
| 1,109,912 |
|
|
| 848,407 |
|
|
| 811,670 |
|
Total liabilities |
|
| 1,402,439 |
|
|
| 1,335,989 |
|
|
| 1,294,555 |
|
|
| 1,011,333 |
|
|
| 971,379 |
|
Total Broadstone Net Lease, Inc. stockholders' equity |
|
| 1,300,542 |
|
|
| 1,248,768 |
|
|
| 1,186,825 |
|
|
| 1,140,214 |
|
|
| 1,073,307 |
|
Total equity (book value) |
|
| 1,412,819 |
|
|
| 1,345,680 |
|
|
| 1,284,201 |
|
|
| 1,232,766 |
|
|
| 1,166,798 |
|
Total revenues |
|
| 57,032 |
|
|
| 55,589 |
|
|
| 49,472 |
|
|
| 46,235 |
|
|
| 43,671 |
|
Total operating expenses |
|
| 30,636 |
|
|
| 29,054 |
|
|
| 26,284 |
|
|
| 26,827 |
|
|
| 22,026 |
|
Interest expense |
|
| 12,454 |
|
|
| 11,177 |
|
|
| 9,569 |
|
|
| 9,380 |
|
|
| 7,860 |
|
Net income (loss) |
|
| 18,386 |
|
|
| 18,995 |
|
|
| 16,826 |
|
|
| 12,990 |
|
|
| 15,992 |
|
Net earnings per common share, basic and diluted |
| $ | 0.86 |
|
| $ | 0.92 |
|
| $ | 0.84 |
|
| $ | 0.68 |
|
| $ | 0.89 |
|
FFO |
|
| 34,362 |
|
|
| 34,858 |
|
|
| 31,460 |
|
|
| 27,189 |
|
|
| 25,248 |
|
FFO per share, basic and diluted |
| $ | 1.60 |
|
| $ | 1.68 |
|
| $ | 1.57 |
|
| $ | 1.42 |
|
| $ | 1.40 |
|
AFFO |
|
| 29,928 |
|
|
| 30,271 |
|
|
| 27,006 |
|
|
| 24,813 |
|
|
| 24,048 |
|
AFFO per share, basic and diluted |
| $ | 1.39 |
|
| $ | 1.46 |
|
| $ | 1.34 |
|
| $ | 1.30 |
|
| $ | 1.33 |
|
Net cash provided by operating activities |
|
| 26,438 |
|
|
| 32,237 |
|
|
| 25,575 |
|
|
| 27,057 |
|
|
| 21,322 |
|
Net cash used in investing activities |
|
| (100,196 | ) |
|
| (87,524 | ) |
|
| (313,795 | ) |
|
| (134,292 | ) |
|
| (76,066 | ) |
Net cash provided by financing activities |
|
| 69,830 |
|
|
| 69,938 |
|
|
| 283,696 |
|
|
| 78,087 |
|
|
| 58,878 |
|
Distributions declared |
|
| 28,002 |
|
|
| 26,948 |
|
|
| 25,015 |
|
|
| 23,949 |
|
|
| 22,537 |
|
Distributions declared per diluted share |
| $ | 1.29 |
|
| $ | 1.28 |
|
| $ | 1.25 |
|
| $ | 1.25 |
|
| $ | 1.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Properties |
|
| 558 |
|
|
| 550 |
|
|
| 528 |
|
|
| 477 |
|
|
| 459 |
|
Rentable square feet |
| 17.4M |
|
| 16.3M |
|
| 15.9M |
|
| 14.1M |
|
| 13.4M |
| |||||
% Leased |
|
| 100.0 | % |
|
| 100.0 | % |
|
| 100.0 | % |
|
| 100.0 | % |
|
| 100.0 | % |
Physical occupancy |
|
| 99.4 | % |
|
| 99.4 | % |
|
| 99.6 | % |
|
| 98.2 | % |
|
| 98.1 | % |
Weighted average remaining lease term (years) |
|
| 12.9 |
|
|
| 13.0 |
|
|
| 13.1 |
|
|
| 13.2 |
|
|
| 13.4 |
|
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 5 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
(unaudited, in thousands, except per share data)
|
| Three Months Ended |
| |||||||||||||||||
|
| June 30, 2018 |
|
| March 31, 2018 |
|
| December 31, 2017 |
|
| September 30, 2017 |
|
| June 30, 2017 |
| |||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income from operating leases |
| $ | 53,590 |
|
| $ | 51,832 |
|
| $ | 46,603 |
|
| $ | 43,233 |
|
| $ | 41,256 |
|
Earned income from direct financing leases |
|
| 953 |
|
|
| 966 |
|
|
| 966 |
|
|
| 968 |
|
|
| 1,074 |
|
Operating expenses reimbursed from tenants |
|
| 2,486 |
|
|
| 2,749 |
|
|
| 1,812 |
|
|
| 1,995 |
|
|
| 1,296 |
|
Other income from real estate transactions |
|
| 3 |
|
|
| 42 |
|
|
| 91 |
|
|
| 39 |
|
|
| 45 |
|
Total revenues |
|
| 57,032 |
|
|
| 55,589 |
|
|
| 49,472 |
|
|
| 46,235 |
|
|
| 43,671 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
| 20,232 |
|
|
| 19,202 |
|
|
| 17,294 |
|
|
| 15,643 |
|
|
| 14,733 |
|
Asset management fees |
|
| 4,313 |
|
|
| 4,143 |
|
|
| 4,088 |
|
|
| 3,844 |
|
|
| 3,629 |
|
Property management fees |
|
| 1,595 |
|
|
| 1,517 |
|
|
| 1,353 |
|
|
| 1,249 |
|
|
| 1,218 |
|
Property and operating expense |
|
| 2,530 |
|
|
| 2,619 |
|
|
| 1,795 |
|
|
| 2,009 |
|
|
| 1,124 |
|
General and administrative |
|
| 1,456 |
|
|
| 1,330 |
|
|
| 1,641 |
|
|
| 1,173 |
|
|
| 1,162 |
|
State and franchise tax |
|
| 510 |
|
|
| 243 |
|
|
| 113 |
|
|
| 301 |
|
|
| 160 |
|
Provision for impairment of investment in rental properties |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 2,608 |
|
|
| — |
|
Total operating expenses |
|
| 30,636 |
|
|
| 29,054 |
|
|
| 26,284 |
|
|
| 26,827 |
|
|
| 22,026 |
|
Operating income |
|
| 26,396 |
|
|
| 26,535 |
|
|
| 23,188 |
|
|
| 19,408 |
|
|
| 21,645 |
|
Other income (expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred distribution income |
|
| 187 |
|
|
| 188 |
|
|
| 187 |
|
|
| 187 |
|
|
| 182 |
|
Interest income |
|
| 52 |
|
|
| 110 |
|
|
| 113 |
|
|
| 127 |
|
|
| 115 |
|
Interest expense |
|
| (12,454 | ) |
|
| (11,177 | ) |
|
| (9,569 | ) |
|
| (9,380 | ) |
|
| (7,860 | ) |
(Cost) gain of debt extinguishment |
|
| (51 | ) |
|
| — |
|
|
| (132 | ) |
|
| (1,404 | ) |
|
| (3,567 | ) |
Gain (loss) on sale of real estate |
|
| 4,256 |
|
|
| 3,339 |
|
|
| 2,660 |
|
|
| 4,052 |
|
|
| 5,477 |
|
Other gains |
|
| — |
|
|
| — |
|
|
| 379 |
|
|
| — |
|
|
| — |
|
Net income |
|
| 18,386 |
|
|
| 18,995 |
|
|
| 16,826 |
|
|
| 12,990 |
|
|
| 15,992 |
|
Net income attributable to non-controlling interests |
|
| (1,412 | ) |
|
| (1,422 | ) |
|
| (1,296 | ) |
|
| (1,042 | ) |
|
| (1,265 | ) |
Net income attributable to Broadstone Net Lease, Inc. |
| $ | 16,974 |
|
| $ | 17,573 |
|
| $ | 15,530 |
|
| $ | 11,948 |
|
| $ | 14,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 19,829 |
|
|
| 19,167 |
|
|
| 18,515 |
|
|
| 17,617 |
|
|
| 16,623 |
|
Diluted |
|
| 21,478 |
|
|
| 20,719 |
|
|
| 20,096 |
|
|
| 19,147 |
|
|
| 18,051 |
|
Net earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
| $ | 0.86 |
|
| $ | 0.92 |
|
| $ | 0.84 |
|
| $ | 0.68 |
|
| $ | 0.89 |
|
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 6 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)
(unaudited, in thousands, except per share data)
|
| Three Months Ended |
| |||||||||||||||||
|
| June 30, 2018 |
|
| March 31, 2018 |
|
| December 31, 2017 |
|
| September 30, 2017 |
|
| June 30, 2017 |
| |||||
Net income |
| $ | 18,386 |
|
| $ | 18,995 |
|
| $ | 16,826 |
|
| $ | 12,990 |
|
| $ | 15,992 |
|
Real property depreciation and amortization |
|
| 20,232 |
|
|
| 19,202 |
|
|
| 17,294 |
|
|
| 15,643 |
|
|
| 14,733 |
|
Gain on sale of real estate |
|
| (4,256 | ) |
|
| (3,339 | ) |
|
| (2,660 | ) |
|
| (4,052 | ) |
|
| (5,477 | ) |
Provision for impairment of investment in rental properties |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 2,608 |
|
|
| — |
|
FFO |
| $ | 34,362 |
|
| $ | 34,858 |
|
| $ | 31,460 |
|
| $ | 27,189 |
|
| $ | 25,248 |
|
Capital improvements/reserves |
|
| (49 | ) |
|
| (49 | ) |
|
| (49 | ) |
|
| (49 | ) |
|
| (49 | ) |
Straight line rent adjustment |
|
| (5,162 | ) |
|
| (5,141 | ) |
|
| (4,547 | ) |
|
| (4,520 | ) |
|
| (4,030 | ) |
Cost of debt extinguishment |
|
| 51 |
|
|
| — |
|
|
| 132 |
|
|
| 1,404 |
|
|
| 3,567 |
|
Other gains |
|
| — |
|
|
| — |
|
|
| (379 | ) |
|
| — |
|
|
| — |
|
Amortization of debt issuance costs |
|
| 472 |
|
|
| 461 |
|
|
| 452 |
|
|
| 486 |
|
|
| 433 |
|
Amortization of net mortgage premiums |
|
| (35 | ) |
|
| (36 | ) |
|
| (74 | ) |
|
| 205 |
|
|
| (29 | ) |
Gain on interest rate swaps and other non-cash interest expense |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (1,280 | ) |
Amortization of lease intangibles |
|
| 289 |
|
|
| 178 |
|
|
| 11 |
|
|
| 99 |
|
|
| 188 |
|
AFFO |
| $ | 29,928 |
|
| $ | 30,271 |
|
| $ | 27,006 |
|
| $ | 24,813 |
|
| $ | 24,048 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding1 |
|
| 21,478 |
|
|
| 20,719 |
|
|
| 20,096 |
|
|
| 19,147 |
|
|
| 18,051 |
|
Net earnings per share, basic and diluted |
| $ | 0.86 |
|
| $ | 0.92 |
|
| $ | 0.84 |
|
| $ | 0.68 |
|
| $ | 0.89 |
|
FFO per diluted share |
|
| 1.60 |
|
|
| 1.68 |
|
|
| 1.57 |
|
|
| 1.42 |
|
|
| 1.40 |
|
AFFO per diluted share |
|
| 1.39 |
|
|
| 1.46 |
|
|
| 1.34 |
|
|
| 1.30 |
|
|
| 1.33 |
|
1 Diluted weighted average number of shares of our common stock and membership units in Broadstone Net Lease, LLC outstanding computed in accordance with GAAP.
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 7 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
(unaudited, in thousands)
|
| June 30, 2018 |
|
| March 31, 2018 |
|
| December 31, 2017 |
|
| September 30, 2017 |
|
| June 30, 2017 |
| |||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounted for using the operating method, net of accumulated depreciation |
| $ | 2,373,376 |
|
| $ | 2,251,938 |
|
| $ | 2,186,141 |
|
| $ | 1,891,708 |
|
| $ | 1,775,293 |
|
Accounted for using the direct financing method |
|
| 42,023 |
|
|
| 41,610 |
|
|
| 41,617 |
|
|
| 41,612 |
|
|
| 41,607 |
|
Investment in rental property, net |
|
| 2,415,399 |
|
|
| 2,293,548 |
|
|
| 2,227,758 |
|
|
| 1,933,320 |
|
|
| 1,816,900 |
|
Cash and cash equivalents |
|
| 13,765 |
|
|
| 13,499 |
|
|
| 9,355 |
|
|
| 13,698 |
|
|
| 35,752 |
|
Restricted cash |
|
| 7,057 |
|
|
| 11,251 |
|
|
| 744 |
|
|
| 925 |
|
|
| 8,019 |
|
Accrued rental income |
|
| 60,857 |
|
|
| 56,465 |
|
|
| 52,018 |
|
|
| 47,766 |
|
|
| 43,930 |
|
Tenant and other receivables, net |
|
| 95 |
|
|
| 421 |
|
|
| 897 |
|
|
| 1,120 |
|
|
| 900 |
|
Tenant and capital reserves |
|
| 1,041 |
|
|
| 992 |
|
|
| 943 |
|
|
| 897 |
|
|
| 848 |
|
Prepaid expenses and other assets |
|
| 1,837 |
|
|
| 855 |
|
|
| 267 |
|
|
| 699 |
|
|
| 1,202 |
|
Notes receivable |
|
| — |
|
|
| 6,527 |
|
|
| 6,527 |
|
|
| 6,527 |
|
|
| 6,527 |
|
Investment in related party |
|
| 10,000 |
|
|
| 10,000 |
|
|
| 10,000 |
|
|
| 10,000 |
|
|
| 10,000 |
|
Interest rate swap, assets |
|
| 30,169 |
|
|
| 24,040 |
|
|
| 11,008 |
|
|
| 7,493 |
|
|
| 7,781 |
|
Intangible lease assets, net |
|
| 258,294 |
|
|
| 247,249 |
|
|
| 242,659 |
|
|
| 205,469 |
|
|
| 190,467 |
|
Debt issuance costs – unsecured revolver, net |
|
| 2,644 |
|
|
| 2,835 |
|
|
| 3,026 |
|
|
| 3,139 |
|
|
| 3,325 |
|
Leasing fees, net |
|
| 14,100 |
|
|
| 13,987 |
|
|
| 13,554 |
|
|
| 13,046 |
|
|
| 12,526 |
|
Total assets |
| $ | 2,815,258 |
|
| $ | 2,681,669 |
|
| $ | 2,578,756 |
|
| $ | 2,244,099 |
|
| $ | 2,138,177 |
|
Liabilities and equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured revolver |
| $ | 272,500 |
|
| $ | 317,000 |
|
| $ | 273,000 |
|
| $ | 126,500 |
|
| $ | 90,000 |
|
Mortgages and notes payable, net |
|
| 86,242 |
|
|
| 67,097 |
|
|
| 67,832 |
|
|
| 57,883 |
|
|
| 67,705 |
|
Unsecured term notes, net |
|
| 927,364 |
|
|
| 837,159 |
|
|
| 836,912 |
|
|
| 721,907 |
|
|
| 721,670 |
|
Interest rate swap, liabilities |
|
| 184 |
|
|
| 1,096 |
|
|
| 5,020 |
|
|
| 7,119 |
|
|
| 7,691 |
|
Accounts payable and other liabilities |
|
| 22,492 |
|
|
| 22,197 |
|
|
| 20,345 |
|
|
| 18,426 |
|
|
| 18,233 |
|
Due to related parties |
|
| 915 |
|
|
| 2,271 |
|
|
| 722 |
|
|
| 1,688 |
|
|
| 1,310 |
|
Tenant improvement allowances |
|
| 4,292 |
|
|
| 4,292 |
|
|
| 5,669 |
|
|
| 6,627 |
|
|
| 5,627 |
|
Accrued interest payable |
|
| 3,008 |
|
|
| 4,642 |
|
|
| 3,311 |
|
|
| 4,880 |
|
|
| 2,439 |
|
Intangible lease liabilities, net |
|
| 85,442 |
|
|
| 80,235 |
|
|
| 81,744 |
|
|
| 66,303 |
|
|
| 56,704 |
|
Total liabilities |
|
| 1,402,439 |
|
|
| 1,335,989 |
|
|
| 1,294,555 |
|
|
| 1,011,333 |
|
|
| 971,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Broadstone Net Lease, Inc. stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Common stock, $0.001 par value |
|
| 20 |
|
|
| 20 |
|
|
| 19 |
|
|
| 18 |
|
|
| 17 |
|
Additional paid-in capital |
|
| 1,409,541 |
|
|
| 1,355,268 |
|
|
| 1,301,979 |
|
|
| 1,253,431 |
|
|
| 1,176,319 |
|
Subscriptions receivable |
|
| (500 | ) |
|
| (144 | ) |
|
| (15 | ) |
|
| (470 | ) |
|
| — |
|
Cumulative distributions in excess of retained earnings |
|
| (135,829 | ) |
|
| (127,183 | ) |
|
| (120,280 | ) |
|
| (112,725 | ) |
|
| (102,711 | ) |
Accumulated other comprehensive income |
|
| 27,310 |
|
|
| 20,807 |
|
|
| 5,122 |
|
|
| (40 | ) |
|
| (318 | ) |
Total Broadstone Net Lease, Inc. stockholders’ equity |
|
| 1,300,542 |
|
|
| 1,248,768 |
|
|
| 1,186,825 |
|
|
| 1,140,214 |
|
|
| 1,073,307 |
|
Non-controlling interests |
|
| 112,277 |
|
|
| 96,912 |
|
|
| 97,376 |
|
|
| 92,552 |
|
|
| 93,491 |
|
Total equity |
|
| 1,412,819 |
|
|
| 1,345,680 |
|
|
| 1,284,201 |
|
|
| 1,232,766 |
|
|
| 1,166,798 |
|
Total liabilities and equity |
| $ | 2,815,258 |
|
| $ | 2,681,669 |
|
| $ | 2,578,756 |
|
| $ | 2,244,099 |
|
| $ | 2,138,177 |
|
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 8 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
(unaudited, in thousands, except per share data)
EQUITY ($ in thousands, except per share amounts) |
|
|
|
|
|
| 20,239 |
| |
Membership Units |
|
| 1,737 |
|
Common Stock & OP Units |
|
| 21,976 |
|
Price Per Share / Unit |
| $ | 83.00 |
|
IMPLIED EQUITY MARKET CAPITALIZATION |
| $ | 1,824,018 |
|
% of Total Capitalization |
|
| 58.6 | % |
DEBT ($ in thousands) |
|
|
|
|
Unsecured Revolving Credit Facility - 2022 |
| $ | 272,500 |
|
Unsecured Term Loan Facilities |
|
| 780,000 |
|
Unsecured Term Loan - 2021 |
|
| 325,000 |
|
Unsecured Term Loan - 2023 |
|
| 265,000 |
|
Unsecured Term Loan - 2024 |
|
| 190,000 |
|
Senior Unsecured Notes - 2027 |
|
| 150,000 |
|
Mortgage Debt - Various |
|
| 86,802 |
|
TOTAL DEBT |
| $ | 1,289,302 |
|
% of Total Capitalization |
|
| 41.4 | % |
% of Total Capitalization Floating Rate Debt |
|
| 7.6 | % |
% of Total Capitalization Fixed Rate Debt |
|
| 33.8 | % |
ENTERPRISE VALUE ($ in thousands) |
|
|
|
|
Total Capitalization |
| $ | 3,113,320 |
|
Less: Cash and Cash Equivalents |
|
| (13,765 | ) |
Enterprise Value |
| $ | 3,099,555 |
|
$325 million loan facility maturity is depicted with available extension options. The value of common stock and operating company unit equity is calculated by multiplying the total number of shares and units by BNL’s Determined Share Value of $83 as of June 30, 2018. The fixed/hedged unsecured debt encompasses both outstanding term notes and a portion of BNL’s LOC.
Equity Summary
(unaudited, dollars in millions)
Broadstone Net Lease raises equity on a monthly basis through private offerings to accredited investors. Beginning in November 2017, BNL implemented a cap on new and additional investments at its monthly equity closings. The cap applies to new or additional investments and does not apply to investments made pursuant to its DRIP or equity capital received (operating company units) in connection with UPREIT transactions. For the months of April 2018 through June 2018, the monthly cap was $15 million. The cap was raised to $20 million for the months of July 2018 through October 2018.
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 9 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
(unaudited, in thousands)
Year of Maturity |
| 2015 Unsecured Term Loan Agreement |
|
| 5.5-Year Term Loan |
|
| 7-Year Term Loan |
|
| Revolver |
|
| 2017 Senior Notes |
|
| Mortgages and Notes Payable |
|
| Total |
| |||||||
2018 |
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | 1,731 |
|
| $ | 1,731 |
|
2019 |
|
| 325,000 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 3,644 |
|
|
| 328,644 |
|
2020 |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 9,081 |
|
|
| 9,081 |
|
2021 |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 18,584 |
|
|
| 18,584 |
|
2022 |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 272,500 |
|
|
| — |
|
|
| 3,066 |
|
|
| 275,566 |
|
Thereafter |
|
| — |
|
|
| 265,000 |
|
|
| 190,000 |
|
|
| — |
|
|
| 150,000 |
|
|
| 50,696 |
|
|
| 655,696 |
|
Total |
| $ | 325,000 |
|
| $ | 265,000 |
|
| $ | 190,000 |
|
| $ | 272,500 |
|
| $ | 150,000 |
|
| $ | 86,802 |
|
| $ | 1,289,302 |
|
|
| Outstanding Balance |
|
|
|
|
|
|
| |||||
|
| June 30, |
|
| December 31, |
|
|
|
|
|
|
| ||
|
|
| 2018 |
|
|
| 2017 |
|
| Interest Rate |
|
| Maturity Date | |
2015 Unsecured Term Loan Agreement |
| $ | 325,000 |
|
| $ | 325,000 |
|
| 1- month LIBOR + 1.40% |
|
| Feb. 2019 | |
2017 Unsecured Revolving Credit and Term Loan Agreement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revolver |
| 272,500 |
|
|
| 273,000 |
|
| 1- and 3-month LIBOR + 1.20% |
|
| Jan. 2022 | ||
5.5-Year Term Loan |
| 265,000 |
|
|
| 265,000 |
|
| 1- month LIBOR + 1.35% |
|
| Jan. 2023 | ||
7-Year Term Loan |
| 190,000 |
|
|
| 100,000 |
|
| 1- month LIBOR + 1.90% |
|
| Jun. 2024 | ||
|
|
| 727,500 |
|
|
| 638,000 |
|
|
|
|
|
|
|
2017 Senior Notes |
|
| 150,000 |
|
|
| 150,000 |
|
| 4.84% |
|
| Apr. 2027 | |
Total |
|
| 1,202,500 |
|
|
| 1,113,000 |
|
|
|
|
|
|
|
Debt issuance costs, net |
|
| (2,636 | ) |
|
| (3,088 | ) |
|
|
|
|
|
|
|
|
| 1,199,864 |
|
|
| 1,109,912 |
|
|
|
|
|
|
|
As discussed in its Form 10-Q for the period ended June 30, 2018, subsequent to the end of the second quarter, on July 2, 2018 Broadstone Net Lease entered into a Note and Guaranty Agreement pursuant to the terms of which the Operating Company will issue and sell $325.0 principal amount of unsecured, fixed-rate, interest-only senior notes of which $150.0 million was issued on July 2, 2018 and the remainder will be issued on September 13, 2018. See the Company’s Form 10-Q for the period ended June 30, 2018 for further information.
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 10 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
Debt Maturities and Interest Rate Exposure
(unaudited, dollars in millions)
Debt Maturities
Broadstone Net Lease utilizes diversified sources of debt capital including unsecured bank debt, private placement and secured mortgages (where appropriate).
$325 million term loan facility depicted with extension options.
Broadstone Net Lease uses interest rate swaps to mitigate the impact of interest rate variability. The intended net impact of the swaps is that the Company pays a fixed interest rate on its variable rate borrowings.
Interest rate exposure not inclusive of floating rate debt, as borrowings are short-term in nature.
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 11 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
Credit Facility and Notes Covenants
(unaudited)
The following is a summary of key financial covenants for the Company’s unsecured credit facility. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of June 30, 2018, the Company believes it is in compliance with the covenants.
Covenants |
| Required |
| Actual as of June 30, 2018 |
| |
| ≤ 0.60 to 1.00 |
|
| 0.43 |
| |
Secured indebtedness ratio |
| ≤ 0.40 to 1.00 |
|
| 0.03 |
|
Unencumbered coverage ratio |
| ≥ 1.75 to 1.00 |
|
| 3.56 |
|
Fixed charge coverage ratio |
| ≥ 1.50 to 1.00 |
|
| 3.21 |
|
Total unsecured indebtedness to total unencumbered eligible property value |
| ≤ 0.60 to 1.00 |
|
| 0.47 |
|
Dividends and other restricted payments |
| Only applicable in case of default |
| Not Applicable |
| |
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 12 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
Acquisitions
(unaudited, square feet and dollars in thousands)
The following table summarizes the Company’s property acquisition activity during 2018.
Q1 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property Type |
| Number of Properties |
|
| Square Feet ('000s) |
|
| Weighted Average Lease Term (years) |
|
| Acquisition Price ($'000s) |
| ||||
Retail |
|
| 24 |
|
|
| 116 |
|
|
| 20.0 |
|
| $ | 67,903 |
|
Industrial |
|
| 3 |
|
|
| 335 |
|
|
| 13.0 |
|
|
| 32,627 |
|
Total Properties |
|
| 27 |
|
|
| 451 |
|
|
| 17.6 |
|
| $ | 100,530 |
|
Weighted average cash cap rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 6.4 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property Type |
| Number of Properties |
|
| Square Feet ('000s) |
|
| Weighted Average Lease Term (years) |
|
| Acquisition Price ($'000s) |
| ||||
Retail |
|
| 9 |
|
|
| 177 |
|
|
| 16.9 |
|
| $ | 41,143 |
|
Industrial |
|
| 4 |
|
|
| 758 |
|
|
| 14.3 |
|
|
| 96,940 |
|
Other |
|
| 1 |
|
|
| 95 |
|
|
| 7.1 |
|
|
| 16,170 |
|
Total Properties |
|
| 14 |
|
|
| 1,030 |
|
|
| 14.3 |
|
| $ | 154,253 |
|
Weighted average cash cap rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 6.9 | % |
Dispositions
(unaudited, square feet and dollars in thousands)
The following table summarizes the Company’s property disposition activity during 2018.
Q1 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property Type |
| Number of Properties |
|
| Square Feet ('000s) |
|
| Acquisition Price ($'000s) |
|
| Disposition Price ($'000s) |
|
| Net Book Value ($'000s) |
|
| Cash Cap Rate |
| ||||||
Retail |
|
| 3 |
|
|
| 10 |
|
| $ | 7,009 |
|
| $ | 9,503 |
|
| $ | 6,727 |
|
|
| 6.4 | % |
Healthcare |
|
| 2 |
|
|
| 30 |
|
|
| 6,464 |
|
|
| 7,310 |
|
|
| 5,672 |
|
|
| 8.4 | % |
Total Properties |
|
| 5 |
|
|
| 40 |
|
| $ | 13,473 |
|
| $ | 16,813 |
|
| $ | 12,399 |
|
|
| 7.3 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property Type |
| Number of Properties |
|
| Square Feet ('000s) |
|
| Acquisition Price ($'000s) |
|
| Disposition Price ($'000s) |
|
| Net Book Value ($'000s) |
|
| Cash Cap Rate |
| ||||||
Retail |
|
| 4 |
|
|
| 17 |
|
| $ | 7,179 |
|
| $ | 9,770 |
|
| $ | 6,292 |
|
|
| 7.5 | % |
Healthcare |
|
| 2 |
|
|
| 11 |
|
|
| 4,300 |
|
|
| 5,759 |
|
|
| 4,003 |
|
|
| 6.8 | % |
Total Properties |
|
| 6 |
|
|
| 28 |
|
| $ | 11,479 |
|
| $ | 15,529 |
|
| $ | 10,295 |
|
|
| 7.2 | % |
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 13 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
Portfolio at a Glance: Key Metrics
Properties | 558 |
|
|
States | 42 |
| |
Total Building Sq. Footage | 17.4M |
| |
Enterprise Value | $3.1B |
| |
Tenants | 141 |
| |
Brands | 118 |
| |
Industries | 44 |
| |
% Leased | 100% |
| |
Physical Occupancy (based on SF) | 99.4% |
| |
Top Twenty Tenant Concentration | 39.5% |
| |
Investment Grade (tenant/guarantor) | 12.8% |
| |
Financial Reporting Coverage | 88.4% |
| |
Weighted Average Annual Rent Increases | 2.1% |
| |
Weighted Average Remaining Lease Term | 12.9 years |
|
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 14 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
Diversification: Tenants & Brands
(unaudited, rent percentages based on contractual rent over the next twelve months)
Top 20 Tenants
Tenant |
| # Properties |
|
| NTM Rent ($'000s) |
|
| NTM Rent as a % of Total Portfolio |
|
| Square Feet ('000s) |
|
| SF as a % of Total Portfolio |
| |||||
Art Van Furniture |
|
| 10 |
|
| $ | 8,157 |
|
|
| 3.9 | % |
|
| 665 |
|
|
| 3.8 | % |
Red Lobster Hospitality |
|
| 25 |
|
|
| 7,311 |
|
|
| 3.5 | % |
|
| 203 |
|
|
| 1.2 | % |
Jack's Family Restaurants |
|
| 36 |
|
|
| 5,909 |
|
|
| 2.8 | % |
|
| 121 |
|
|
| 0.7 | % |
Outback Steakhouse |
|
| 24 |
|
|
| 5,380 |
|
|
| 2.6 | % |
|
| 152 |
|
|
| 0.9 | % |
Krispy Kreme |
|
| 26 |
|
|
| 4,908 |
|
|
| 2.3 | % |
|
| 152 |
|
|
| 0.9 | % |
Big Tex Trailer Manufacturing |
|
| 17 |
|
|
| 4,591 |
|
|
| 2.2 | % |
|
| 1,302 |
|
|
| 7.5 | % |
Siemens |
|
| 2 |
|
|
| 4,552 |
|
|
| 2.2 | % |
|
| 545 |
|
|
| 3.1 | % |
Nestle' Dreyer's Ice Cream Company |
|
| 1 |
|
|
| 4,259 |
|
|
| 2.0 | % |
|
| 309 |
|
|
| 1.8 | % |
Nationwide Mutual Insurance Company |
|
| 2 |
|
|
| 4,017 |
|
|
| 1.9 | % |
|
| 407 |
|
|
| 2.3 | % |
Arkansas Surgical Hospital |
|
| 1 |
|
|
| 4,014 |
|
|
| 1.9 | % |
|
| 128 |
|
|
| 0.7 | % |
Bob Evans Restaurants |
|
| 25 |
|
|
| 3,728 |
|
|
| 1.8 | % |
|
| 131 |
|
|
| 0.8 | % |
BEF Foods |
|
| 2 |
|
|
| 3,670 |
|
|
| 1.8 | % |
|
| 330 |
|
|
| 1.9 | % |
Centene Management Company |
|
| 1 |
|
|
| 3,056 |
|
|
| 1.5 | % |
|
| 220 |
|
|
| 1.3 | % |
Shemin Nurseries |
|
| 9 |
|
|
| 2,769 |
|
|
| 1.3 | % |
|
| 97 |
|
|
| 0.6 | % |
GRHS Foundation |
|
| 1 |
|
|
| 2,729 |
|
|
| 1.3 | % |
|
| 120 |
|
|
| 0.7 | % |
Froedtert & Medical College of Wisconsin |
|
| 4 |
|
|
| 2,704 |
|
|
| 1.3 | % |
|
| 90 |
|
|
| 0.5 | % |
Raben Tire |
|
| 19 |
|
|
| 2,688 |
|
|
| 1.3 | % |
|
| 455 |
|
|
| 2.6 | % |
Preferred Freezer Services |
|
| 1 |
|
|
| 2,684 |
|
|
| 1.3 | % |
|
| 260 |
|
|
| 1.5 | % |
K&N Management |
|
| 4 |
|
|
| 2,681 |
|
|
| 1.3 | % |
|
| 41 |
|
|
| 0.2 | % |
MedVet Associates |
|
| 7 |
|
|
| 2,668 |
|
|
| 1.3 | % |
|
| 148 |
|
|
| 0.9 | % |
Total Top 20 Tenants |
|
| 217 |
|
| $ | 82,475 |
|
|
| 39.5 | % |
|
| 5,876 |
|
|
| 33.9 | % |
Top 20 Brands
Brand |
| # Properties |
|
| NTM Rent ($'000s) |
|
| NTM Rent as a % of Total Portfolio |
|
| Square Feet ('000s) |
|
| SF as a % of Total Portfolio |
| |||||
Art Van Furniture |
|
| 10 |
|
| $ | 8,157 |
|
|
| 3.9 | % |
|
| 665 |
|
|
| 3.8 | % |
Bob Evans Farms |
|
| 27 |
|
|
| 7,398 |
|
|
| 3.5 | % |
|
| 461 |
|
|
| 2.7 | % |
Red Lobster |
|
| 25 |
|
|
| 7,311 |
|
|
| 3.5 | % |
|
| 203 |
|
|
| 1.2 | % |
Wendy's |
|
| 41 |
|
|
| 5,959 |
|
|
| 2.8 | % |
|
| 121 |
|
|
| 0.7 | % |
Jack's Family Restaurants |
|
| 36 |
|
|
| 5,909 |
|
|
| 2.8 | % |
|
| 121 |
|
|
| 0.7 | % |
Taco Bell |
|
| 41 |
|
|
| 5,216 |
|
|
| 2.5 | % |
|
| 103 |
|
|
| 0.6 | % |
Krispy Kreme |
|
| 26 |
|
|
| 4,908 |
|
|
| 2.3 | % |
|
| 152 |
|
|
| 0.9 | % |
Outback Steakhouse |
|
| 22 |
|
|
| 4,705 |
|
|
| 2.2 | % |
|
| 139 |
|
|
| 0.8 | % |
Big Tex Trailers |
|
| 17 |
|
|
| 4,591 |
|
|
| 2.2 | % |
|
| 1,302 |
|
|
| 7.5 | % |
Siemens |
|
| 2 |
|
|
| 4,552 |
|
|
| 2.2 | % |
|
| 545 |
|
|
| 3.1 | % |
Nestle |
|
| 1 |
|
|
| 4,259 |
|
|
| 2.0 | % |
|
| 310 |
|
|
| 1.8 | % |
Nationwide Mutual Insurance Co. |
|
| 2 |
|
|
| 4,017 |
|
|
| 1.9 | % |
|
| 407 |
|
|
| 2.3 | % |
Arkansas Surgical Hospital |
|
| 1 |
|
|
| 4,013 |
|
|
| 1.9 | % |
|
| 128 |
|
|
| 0.7 | % |
Applebee's Neighborhood Grill & Bar |
|
| 19 |
|
|
| 3,594 |
|
|
| 1.7 | % |
|
| 95 |
|
|
| 0.5 | % |
Centene Corp. |
|
| 1 |
|
|
| 3,056 |
|
|
| 1.5 | % |
|
| 220 |
|
|
| 1.3 | % |
SiteOne Landscape Supply |
|
| 9 |
|
|
| 2,769 |
|
|
| 1.3 | % |
|
| 97 |
|
|
| 0.6 | % |
Rochester Regional Health System |
|
| 1 |
|
|
| 2,729 |
|
|
| 1.3 | % |
|
| 120 |
|
|
| 0.7 | % |
Froedtert & Medical College of Wisconsin |
|
| 4 |
|
|
| 2,704 |
|
|
| 1.3 | % |
|
| 90 |
|
|
| 0.5 | % |
Raben Tire & Auto Service |
|
| 19 |
|
|
| 2,688 |
|
|
| 1.3 | % |
|
| 455 |
|
|
| 2.6 | % |
Preferred Freezer |
|
| 1 |
|
|
| 2,684 |
|
|
| 1.3 | % |
|
| 260 |
|
|
| 1.5 | % |
Total Top 20 Brands |
|
| 305 |
|
| $ | 91,219 |
|
|
| 43.4 | % |
|
| 5,994 |
|
|
| 34.5 | % |
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 15 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
Diversification: Property Type
(unaudited, rent percentages based on contractual rent over the next twelve months)
Property Type |
| # Properties |
|
| NTM Rent ($'000s) |
|
| NTM Rent as a % of Total Portfolio |
|
| Square Feet ('000s) |
|
| SF as a % of Total Portfolio |
| |||||
Retail - Casual Dining |
|
| 111 |
|
| $ | 24,895 |
|
|
| 11.9 | % |
|
| 713 |
|
|
| 4.1 | % |
Retail - QSR |
|
| 153 |
|
|
| 23,568 |
|
|
| 11.3 | % |
|
| 471 |
|
|
| 2.7 | % |
Retail - Other |
|
| 94 |
|
|
| 23,852 |
|
|
| 11.4 | % |
|
| 1,885 |
|
|
| 10.9 | % |
Retail Total |
|
| 358 |
|
|
| 72,315 |
|
|
| 34.6 | % |
|
| 3,069 |
|
|
| 17.7 | % |
Industrial - Warehouse/Distribution |
|
| 21 |
|
|
| 27,615 |
|
|
| 13.2 | % |
|
| 3,433 |
|
|
| 19.8 | % |
Industrial - Manufacturing |
|
| 43 |
|
|
| 21,020 |
|
|
| 10.0 | % |
|
| 4,547 |
|
|
| 26.2 | % |
Industrial - Flex |
|
| 11 |
|
|
| 13,341 |
|
|
| 6.4 | % |
|
| 1,837 |
|
|
| 10.6 | % |
Industrial - Other |
|
| 6 |
|
|
| 7,265 |
|
|
| 3.5 | % |
|
| 779 |
|
|
| 4.4 | % |
Industrial Total |
|
| 81 |
|
|
| 69,241 |
|
|
| 33.1 | % |
|
| 10,596 |
|
|
| 61.0 | % |
Healthcare - Clinical |
|
| 44 |
|
|
| 22,361 |
|
|
| 10.7 | % |
|
| 1,098 |
|
|
| 6.3 | % |
Healthcare - Surgical |
|
| 13 |
|
|
| 9,775 |
|
|
| 4.7 | % |
|
| 322 |
|
|
| 1.9 | % |
Healthcare - Other |
|
| 33 |
|
|
| 8,038 |
|
|
| 3.8 | % |
|
| 329 |
|
|
| 1.9 | % |
Healthcare Total |
|
| 90 |
|
|
| 40,174 |
|
|
| 19.2 | % |
|
| 1,749 |
|
|
| 10.1 | % |
Office Total |
|
| 15 |
|
|
| 19,048 |
|
|
| 9.1 | % |
|
| 1,369 |
|
|
| 7.9 | % |
Other Total |
|
| 14 |
|
|
| 8,433 |
|
|
| 4.0 | % |
|
| 567 |
|
|
| 3.3 | % |
Total |
|
| 558 |
|
| $ | 209,211 |
|
|
| 100.0 | % |
|
| 17,350 |
|
|
| 100.0 | % |
Diversification: Tenant Industry
(unaudited, rent percentages based on contractual rent over the next twelve months)
Industry |
| # Properties |
|
| NTM Rent ($'000s) |
|
| NTM Rent as a % of Total Portfolio |
|
| Square Feet ('000s) |
|
| SF as a % of Total Portfolio |
| |||||
Restaurants |
|
| 266 |
|
| $ | 49,128 |
|
|
| 23.5 | % |
|
| 1,219 |
|
|
| 7.0 | % |
Healthcare Facilities |
|
| 78 |
|
|
| 34,812 |
|
|
| 16.6 | % |
|
| 1,405 |
|
|
| 8.1 | % |
Home Furnishing Retail |
|
| 19 |
|
|
| 11,834 |
|
|
| 5.7 | % |
|
| 1,300 |
|
|
| 7.5 | % |
Specialized Consumer Services |
|
| 36 |
|
|
| 9,364 |
|
|
| 4.5 | % |
|
| 736 |
|
|
| 4.2 | % |
Packaged Foods & Meats |
|
| 5 |
|
|
| 8,835 |
|
|
| 4.2 | % |
|
| 727 |
|
|
| 4.2 | % |
Auto Parts & Equipment |
|
| 31 |
|
|
| 8,769 |
|
|
| 4.2 | % |
|
| 2,008 |
|
|
| 11.6 | % |
Healthcare Services |
|
| 12 |
|
|
| 6,567 |
|
|
| 3.1 | % |
|
| 428 |
|
|
| 2.5 | % |
Air Freight & Logistics |
|
| 3 |
|
|
| 6,189 |
|
|
| 3.0 | % |
|
| 436 |
|
|
| 2.5 | % |
Industrial Conglomerates |
|
| 2 |
|
|
| 4,552 |
|
|
| 2.2 | % |
|
| 545 |
|
|
| 3.1 | % |
Multi-line Insurance |
|
| 2 |
|
|
| 4,017 |
|
|
| 1.9 | % |
|
| 407 |
|
|
| 2.3 | % |
Distributors |
|
| 10 |
|
|
| 3,928 |
|
|
| 1.9 | % |
|
| 336 |
|
|
| 1.9 | % |
Life Sciences Tools & Services |
|
| 5 |
|
|
| 3,925 |
|
|
| 1.9 | % |
|
| 301 |
|
|
| 1.7 | % |
Industrial Machinery |
|
| 11 |
|
|
| 3,500 |
|
|
| 1.7 | % |
|
| 782 |
|
|
| 4.5 | % |
Aerospace & Defense |
|
| 5 |
|
|
| 3,465 |
|
|
| 1.7 | % |
|
| 690 |
|
|
| 4.0 | % |
Metal & Glass Containers |
|
| 3 |
|
|
| 3,176 |
|
|
| 1.5 | % |
|
| 516 |
|
|
| 3.0 | % |
All others (29) |
|
| 70 |
|
|
| 47,150 |
|
|
| 22.4 | % |
|
| 5,514 |
|
|
| 31.9 | % |
Total Industries |
|
| 558 |
|
| $ | 209,211 |
|
|
| 100.0 | % |
|
| 17,350 |
|
|
| 100.0 | % |
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 16 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
(unaudited, rent percentages based on contractual rent over the next twelve months)
| TOTAL PROPERTIES: 558 TOTAL STATES: 42 |
State |
| # Properties |
|
| NTM Rent ($'000s) |
|
| NTM Rent as a % of Total Portfolio |
|
| Square Feet ('000s) |
|
| SF as a % of Total Portfolio |
|
| State |
| # Properties |
|
| NTM Rent ($'000s) |
|
|
|
| NTM Rent as a % of Total Portfolio |
|
|
|
| Square Feet ('000s) |
|
|
|
| SF as a % of Total Portfolio |
| ||||||||||
TX |
|
| 46 |
|
| $ | 19,506 |
|
|
| 9.3 | % |
|
| 1,796 |
|
|
| 10.4 | % |
| LA |
|
| 2 |
|
| $ | 2,726 |
|
|
|
|
| 1.3 | % |
|
|
|
| 161 |
|
|
|
|
| 0.9 | % |
FL |
|
| 49 |
|
|
| 16,842 |
|
|
| 8.1 | % |
|
| 819 |
|
|
| 4.7 | % |
| NM |
|
| 7 |
|
|
| 2,382 |
|
|
|
|
| 1.1 | % |
|
|
|
| 77 |
|
|
|
|
| 0.4 | % |
WI |
|
| 30 |
|
|
| 14,093 |
|
|
| 6.7 | % |
|
| 1,365 |
|
|
| 7.9 | % |
| KS |
|
| 7 |
|
|
| 2,352 |
|
|
|
|
| 1.1 | % |
|
|
|
| 72 |
|
|
|
|
| 0.4 | % |
MI |
|
| 27 |
|
|
| 13,693 |
|
|
| 6.5 | % |
|
| 1,293 |
|
|
| 7.5 | % |
| AZ |
|
| 3 |
|
|
| 2,103 |
|
|
|
|
| 1.0 | % |
|
|
|
| 138 |
|
|
|
|
| 0.8 | % |
OH |
|
| 32 |
|
|
| 10,941 |
|
|
| 5.2 | % |
|
| 822 |
|
|
| 4.7 | % |
| WA |
|
| 12 |
|
|
| 2,086 |
|
|
|
|
| 1.0 | % |
|
|
|
| 103 |
|
|
|
|
| 0.6 | % |
IL |
|
| 18 |
|
|
| 10,677 |
|
|
| 5.1 | % |
|
| 1,023 |
|
|
| 5.9 | % |
| UT |
|
| 5 |
|
|
| 1,984 |
|
|
|
|
| 1.0 | % |
|
|
|
| 149 |
|
|
|
|
| 0.9 | % |
NC |
|
| 27 |
|
|
| 9,808 |
|
|
| 4.7 | % |
|
| 1,090 |
|
|
| 6.3 | % |
| IA |
|
| 1 |
|
|
| 1,674 |
|
|
|
|
| 0.8 | % |
|
|
|
| 411 |
|
|
|
|
| 2.4 | % |
PA |
|
| 16 |
|
|
| 9,032 |
|
|
| 4.3 | % |
|
| 1,067 |
|
|
| 6.1 | % |
| MA |
|
| 2 |
|
|
| 1,659 |
|
|
|
|
| 0.8 | % |
|
|
|
| 309 |
|
|
|
|
| 1.8 | % |
MN |
|
| 14 |
|
|
| 8,390 |
|
|
| 4.0 | % |
|
| 1,096 |
|
|
| 6.3 | % |
| CT |
|
| 2 |
|
|
| 1,591 |
|
|
|
|
| 0.8 | % |
|
|
|
| 55 |
|
|
|
|
| 0.3 | % |
CA |
|
| 9 |
|
|
| 8,123 |
|
|
| 3.9 | % |
|
| 674 |
|
|
| 3.9 | % |
| WV |
|
| 8 |
|
|
| 1,578 |
|
|
|
|
| 0.8 | % |
|
|
|
| 36 |
|
|
|
|
| 0.2 | % |
NY |
|
| 13 |
|
|
| 7,682 |
|
|
| 3.7 | % |
|
| 413 |
|
|
| 2.4 | % |
| NE |
|
| 5 |
|
|
| 1,558 |
|
|
|
|
| 0.7 | % |
|
|
|
| 164 |
|
|
|
|
| 0.9 | % |
AL |
|
| 44 |
|
|
| 7,634 |
|
|
| 3.7 | % |
|
| 169 |
|
|
| 1.0 | % |
| MD |
|
| 3 |
|
|
| 1,316 |
|
|
|
|
| 0.6 | % |
|
|
|
| 99 |
|
|
|
|
| 0.6 | % |
AR |
|
| 11 |
|
|
| 7,170 |
|
|
| 3.4 | % |
|
| 284 |
|
|
| 1.6 | % |
| SC |
|
| 5 |
|
|
| 1,274 |
|
|
|
|
| 0.6 | % |
|
|
|
| 200 |
|
|
|
|
| 1.2 | % |
IN |
|
| 22 |
|
|
| 6,937 |
|
|
| 3.3 | % |
|
| 801 |
|
|
| 4.6 | % |
| NV |
|
| 2 |
|
|
| 1,262 |
|
|
|
|
| 0.6 | % |
|
|
|
| 81 |
|
|
|
|
| 0.5 | % |
OK |
|
| 30 |
|
|
| 6,221 |
|
|
| 3.0 | % |
|
| 623 |
|
|
| 3.6 | % |
| CO |
|
| 3 |
|
|
| 1,223 |
|
|
|
|
| 0.6 | % |
|
|
|
| 94 |
|
|
|
|
| 0.5 | % |
TN |
|
| 32 |
|
|
| 5,526 |
|
|
| 2.6 | % |
|
| 171 |
|
|
| 1.0 | % |
| MT |
|
| 5 |
|
|
| 735 |
|
|
|
|
| 0.4 | % |
|
|
|
| 14 |
|
|
|
|
| 0.1 | % |
GA |
|
| 20 |
|
|
| 4,283 |
|
|
| 2.0 | % |
|
| 616 |
|
|
| 3.5 | % |
| DE |
|
| 3 |
|
|
| 651 |
|
|
|
|
| 0.3 | % |
|
|
|
| 35 |
|
|
|
|
| 0.2 | % |
VA |
|
| 11 |
|
|
| 3,743 |
|
|
| 1.8 | % |
|
| 68 |
|
|
| 0.4 | % |
| WY |
|
| 1 |
|
|
| 279 |
|
|
|
|
| 0.1 | % |
|
|
|
| 21 |
|
|
|
|
| 0.1 | % |
KY |
|
| 16 |
|
|
| 3,515 |
|
|
| 1.7 | % |
|
| 156 |
|
|
| 0.9 | % |
| MS |
|
| 1 |
|
|
| 259 |
|
|
|
|
| 0.1 | % |
|
|
|
| 7 |
|
|
|
|
| <0.1 | % |
NJ |
|
| 3 |
|
|
| 3,304 |
|
|
| 1.6 | % |
|
| 275 |
|
|
| 1.6 | % |
| ND |
|
| 1 |
|
|
| 228 |
|
|
|
|
| 0.1 | % |
|
|
|
| 3 |
|
|
|
|
| <0.1 | % |
MO |
|
| 9 |
|
|
| 3,074 |
|
|
| 1.5 | % |
|
| 496 |
|
|
| 2.9 | % |
| OR |
|
| 1 |
|
|
| 97 |
|
|
|
|
| 0.1 | % |
|
|
|
| 4 |
|
|
|
|
| <0.1 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
| 558 |
|
| $ | 209,211 |
|
|
|
|
| 100.0 | % |
|
|
|
| 17,350 |
|
|
|
|
| 100.0 | % |
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 17 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
(unaudited, rent percentages based on contractual rent over the next twelve months)
WEIGHTED AVERAGE
REMAINING LEASE TERM: 12.9 YRS
Expiration Year |
| # Properties |
|
| NTM Rent ($'000s) |
|
| NTM Rent as a % of Total Portfolio |
|
| Square Feet ('000s) |
|
| SF as a % of Total Portfolio |
| |||||
2018 |
|
| — |
|
|
| — |
|
|
| — | % |
|
| — |
|
|
| — | % |
2019 |
|
| 1 |
|
|
| 117 |
|
|
| 0.1 | % |
|
| 2 |
|
|
| <0.1 | % |
2020 |
|
| 3 |
|
|
| 1,112 |
|
|
| 0.5 | % |
|
| 95 |
|
|
| 0.5 | % |
2021 |
|
| 5 |
|
|
| 733 |
|
|
| 0.4 | % |
|
| 15 |
|
|
| 0.1 | % |
2022 |
|
| 3 |
|
|
| 2,477 |
|
|
| 1.2 | % |
|
| 87 |
|
|
| 0.5 | % |
2023 |
|
| 12 |
|
|
| 6,424 |
|
|
| 3.1 | % |
|
| 696 |
|
|
| 4.0 | % |
2024 |
|
| 15 |
|
|
| 14,194 |
|
|
| 6.8 | % |
|
| 1,741 |
|
|
| 10.0 | % |
2025 |
|
| 8 |
|
|
| 1,909 |
|
|
| 0.9 | % |
|
| 117 |
|
|
| 0.7 | % |
2026 |
|
| 27 |
|
|
| 11,977 |
|
|
| 5.7 | % |
|
| 797 |
|
|
| 4.6 | % |
2027 |
|
| 34 |
|
|
| 18,653 |
|
|
| 8.9 | % |
|
| 1,721 |
|
|
| 9.9 | % |
2028 |
|
| 29 |
|
|
| 15,039 |
|
|
| 7.2 | % |
|
| 1,464 |
|
|
| 8.4 | % |
2029 |
|
| 63 |
|
|
| 18,258 |
|
|
| 8.7 | % |
|
| 2,696 |
|
|
| 15.5 | % |
Thereafter |
|
| 358 |
|
|
| 118,318 |
|
|
| 56.5 | % |
|
| 7,919 |
|
|
| 45.8 | % |
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 18 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
(unaudited, based upon square feet)
Dividends Paid Per Share
(unaudited)
Year-to-date total return through June 30, 2018, assuming dividend reinvestment, was 5.79%.
On August 8, 2018, the Determined Share Value of our common stock was increased 2.41%, from $83.00 to $85.00. Year-to-date total return, assuming dividend reinvestment, through August 31, 2018 is projected to be 9.49%.
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 19 |
| Q2 2018 SUPPLEMENTAL INFORMATION |
|
|
Important Disclosures and Definitions Regarding Broadstone Net Lease, Inc. (BNL)
Not an offer to sell securities: Offers to sell interests in BNL are made exclusively through BNL’s Private Placement Memorandum (PPM). Offers, solicitations, and sales are not made in jurisdictions where not lawful or prohibited. Securities are not offered to residents of Arizona.
BNL’s securities are privately offered: BNL’s securities have not been registered under the Securities Act of 1933, as amended (the “Securities Act”). BNL conducts its private offering in reliance upon the exemptions from Securities Act registration provided by Rule 506(c) under Regulation D promulgated under the Securities Act and Section 4(a)(2) of the Securities Act and certain state securities laws. BNL’s securities have not been approved or disapproved by the U.S. Securities and Exchange Commission (the “SEC”), the attorney general of the State of New York, any other state securities commission or any other regulatory authority, nor have any of the foregoing passed upon the accuracy or adequacy of the information presented. Any representation to the contrary is a criminal offense.
BNL files public reports with the SEC: BNL has registered its shares of common stock pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). BNL is subject to the registration requirements of Section 12(g) of the Exchange Act because as of December 31, 2016, the aggregate value of its assets exceeded the applicable threshold and its common stock was held of record by 2,000 or more persons. As a result of the registration of its common stock pursuant to the Exchange Act, BNL is subject to the requirements of the Exchange Act and the rules promulgated thereunder. In particular, BNL is required to file Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K, and Current Reports on Form 8-K and otherwise comply with the disclosure obligations of the Exchange Act applicable to issuers filing registration statements to register a class of securities pursuant to Section 12(g) of the Exchange Act.
Investment Company Act: BNL’s securities are not subject to the protections of the Investment Company Act of 1940, as amended.
Accredited investors only: BNL’s securities are only offered and sold to “accredited investors,” as defined under the U.S. securities laws, pursuant to BNL’s PPM and related subscription documents. Individuals are accredited investors only if they meet certain minimum net worth
or sustained annual income thresholds. Entities are accredited investors only if they hold sufficient assets or are completely owned by accredited investors. Please see the definition on the SEC website. http://www.sec.gov/answers/accred.htm
Transfers restricted; No trading market: Transfers of BNL’s securities are restricted by federal and state securities laws and certain provisions of our organizational documents. There is no trading market for the shares and there can be no assurance that such a market will develop in the foreseeable future. BNL’s securities may not be transferred, resold, or otherwise disposed of by an investor unless, in the opinion of counsel acceptable to us, registration under federal and applicable state securities laws is not required or compliance is made with the registration requirements of such laws.
Liquidity of BNL’s securities is limited: Redemptions of BNL’s securities are limited in amount and require that the shares have been held for required periods. Provisions of state law, REIT requirements, and other matters may limit redemptions.
Investments involve significant risks: An investment in BNL’s securities involves significant risks. Only investors who can bear the economic risk of an investment of this type for an indefinite period of time and the risk of loss of their entire investment should invest in BNL’s securities. Factors that may cause our actual results, performance, or achievements to differ materially from our stated expectations include, among others: general economic conditions; local real estate conditions in the markets where our properties are located; financial difficulties of our tenants; loss of key personnel; interest rates rising; compliance with REIT requirements; and continued access to capital to fund growth. See the section entitled “Risk Factors” in our PPM for additional information.
This is not investment, financial, legal, or tax advice: This information is not investment, financial, legal, or tax advice and has been prepared without reference to any reader’s investment profile or financial circumstances. You should obtain financial and tax advice and conduct diligent investigation of information material to you before making any investment decision.
Performance data; Stock price: The value of investments and the income or distributions from investments may fall or rise. BNL’s stock price is not set by any market in the common stock but by our independent directors based on the net asset value of our portfolio of properties determined as described in the PPM. We are not required by law to follow any particular methodology in setting the stock price (referred to in our organizational documents as the Determined Share Value”). There may be variations from time to time in how our independent directors apply or weight the criteria described in the PPM in setting the stock price.
No guarantee of future performance: The information contained herein represents the past performance of BNL. Past performance is not a
guarantee of future performance. The current performance of BNL may be lower or higher than the past performance. Distributions are made at the discretion of BNL’s board of directors and past practices are not guarantees of the timing or amount of future distributions.
Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO): Our reported results and net earnings per dilutive share are presented in accordance with accounting principles generally accepted in the United States of America (GAAP). We also disclose FFO and AFFO, each of which are non-GAAP measures. We believe the use of FFO and AFFO are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO and AFFO should not be considered alternatives to net income as a performance measure or to cash flows from operations, as reported on our statement of cash flows, or as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures.
We compute FFO in accordance with the standards established by the 2002 White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gains (losses) from sales of depreciated real estate assets, depreciation and amortization expense from real estate assets, and impairment charges related to previously depreciated real estate assets. To derive AFFO, we modify the NAREIT computation of FFO to include other adjustments to GAAP net income related to certain non-cash revenues and expenses, including straight-line rents, cost of debt extinguishments, amortization of debt issuance costs, amortization of net mortgage premiums, amortization of lease intangibles, (gain) loss on interest rate swaps and other non-cash interest expense, extraordinary items and other specified non-cash items. We believe that such items are not a result of normal operations and thus we believe excluding such items assists management and investors in distinguishing whether changes in our operations are due to growth or decline of operations at our properties or from other factors.
BROADSTONE NET LEASE, INC. | www.broadstone.com | © 2018 Broadstone Net Lease, Inc. All rights reserved. | 20 |