Broadstone Net Lease 8K Reports 2019 Third Quarter Performance | BNL 12 Nov 19

Exhibit 99.2

Q3 2019 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

	Q3 2019 SUPPLEMENTAL INFORMATION

Table of Contents


Section	Page
Company Overview	4
Quarterly Financial Summary	5
Income Statement Summary	6
Funds From Operations (FFO)	7
Adjusted Funds From Operations (AFFO)	7
Lease Revenues	8
Balance Sheet	9
Capital Structure	10
Equity Summary	10
Debt Outstanding	11
Debt Maturities and Interest Rate Exposure	12
Credit Facility and Notes Covenants	13
Acquisitions	14
Dispositions	15
Portfolio at a Glance: Key Metrics	16
Diversification: Tenants and Brands	17
Diversification: Property Type	18
Diversification: Tenant Industry	18
Diversification: Geography	19
Lease Expirations	20
Occupancy	21
Dividends	21
Disclosures	22

	Q3 2019 SUPPLEMENTAL INFORMATION

About the Data

This data and other information described herein are as of and for the three months ended September 30, 2019 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 Annual Report on Form 10-K for the year ended December 31, 2018, and Quarterly Reports on Form 10-Q for the periods ended September 30, 2019, June 30, 2019, March 31, 2019, and September 30, 2018.

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, regarding, among other things, our plans, strategies, and prospects, both business and financial. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," “should,” "expect," "intend," "anticipate," "estimate," “would be,“ "believe," "continue," or other similar words. Forward-looking statements involve known and unknown risks, which may cause our actual future results to differ materially from expected results, including, without limitation, risks related to general economic conditions, local real estate conditions, tenant financial health, property acquisitions and the timing of these acquisitions, the availability of capital to finance planned growth, our success in our deleveraging efforts, the risk that the Internalization (as defined in our Quarterly Report on Form 10-Q for the period ended September 30, 2019) will not be consummated within the anticipated time period or at all, and our ability to effectively and efficiently manage the Internalization, if consummated. These and other risks, assumptions and uncertainties are described in Item 1A “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, which we filed with the SEC on March 14, 2019, and our Quarterly Report on Form 10-Q for the period ended September 30, 2019, which we filed on November 12, 2019. These documents, which you are encouraged to read, are available on the SEC’s website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. We expressly disclaim any current intention to update publicly any forward-looking statement after the distribution of this supplemental information, whether as a result of new information, future events, changes in assumptions or otherwise.

	Q3 2019 SUPPLEMENTAL INFORMATION

Company Overview

Broadstone Net Lease, Inc. (the “Company,” “BNL,” “us,” “our” and “we”) is currently an externally managed REIT, formed as a Maryland corporation in 2007 to acquire and hold single-tenant, net-leased commercial real estate properties 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, 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 mission critical locations, while utilizing 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

Timothy D. Dieffenbacher

Senior Vice President, Chief Accounting Officer, and Treasurer

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

Laurie A. Hawkes

Lead Independent Director

David M. Jacobstein

Independent Director

Shekar Narasimhan

Independent Director

Geoffrey H. Rosenberger

Independent Director

James H. Watters

Independent Director

Agha S. Khan

Director

Corporate Office & Contact Information

800 Clinton Square
Rochester, New York 14604
585-287-6500

info@broadstone.com
www.broadstone.com

Transfer Agent

Computershare Trust Company, N.A.

250 Royall Street

Canton, Massachusetts 02021

800-736-3001

	Q3 2019 SUPPLEMENTAL INFORMATION

Quarterly Financial Summary

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

	Q3 2019			Q2 2019			Q1 2019			Q4 2018			Q3 2018
Financial Summary
Investment in rental property, net	$	3,501,546		$	2,804,110		$	2,724,971		$	2,683,746		$	2,491,450
Total assets		3,991,788			3,212,318			3,131,943			3,096,797			2,905,345
Mortgage and notes payable, net		112,562			121,074			72,004			78,952			79,762
Unsecured term notes, net and revolver		1,974,811			1,345,976			1,361,995			1,366,873			1,225,473
Total liabilities		2,263,288			1,606,680			1,559,917			1,567,877			1,422,974
Total Broadstone Net Lease, Inc. stockholders' equity		1,623,362			1,498,704			1,462,386			1,417,099			1,369,667
Total equity (book value)		1,728,500			1,605,638			1,572,026			1,528,920			1,482,371
Revenues		76,401			69,053			68,430			63,094			61,764
Total operating expenses		44,110			37,486			38,268			34,471			34,772
Interest expense		18,465			16,732			15,828			14,740			14,484
Net income		25,038			17,342			15,022			14,660			23,064
Net earnings per common share, basic and diluted	$	0.95		$	0.70		$	0.62		$	0.63		$	1.03
FFO		43,280			39,842			38,949			36,475			44,969
FFO per share, basic and diluted	$	1.64		$	1.60		$	1.62		$	1.58		$	2.02
AFFO		38,819			34,637			34,169			32,551			31,315
AFFO per share, basic and diluted	$	1.47		$	1.39		$	1.42		$	1.41		$	1.40
Net cash provided by operating activities		46,214			33,080			31,639			34,494			34,842
Net cash used in investing activities		(749,333	)		(56,257	)		(64,637	)		(235,869	)		(86,870	)
Net cash provided by financing activities		734,516			22,735			27,169			192,336			59,234
Distributions declared		34,883			33,231			31,983			29,603			28,416
Distributions declared per diluted share	$	1.32		$	1.32		$	1.31		$	1.29		$	1.29

Portfolio Metrics
Properties		662			646			644			621			583
Rentable square feet	27.5M			20.3M			19.7M			19.0M			18.0M
% Leased		99.8	%		99.8	%		99.8	%		100.0	%		100.0	%
Physical occupancy		99.7	%		99.6	%		99.7	%		99.7	%		99.4	%
Weighted average remaining lease term (years)		11.7			11.9			12.0			12.1			12.8

	Q3 2019 SUPPLEMENTAL INFORMATION

Income Statement Summary

(unaudited, in thousands, except per share data)

	Three Months Ended
	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Revenues
Lease revenues	$	76,401		$	69,053		$	68,430		$	63,094		$	61,764
Operating expenses
Depreciation and amortization		28,392			25,287			24,310			22,691			21,869
Asset management fees		5,610			5,318			5,120			5,054			4,663
Property management fees		2,098			1,935			1,885			1,737			1,680
Property and operating expense		3,855			3,252			4,390			3,231			2,777
General and administrative		1,315			1,389			1,103			1,712			1,664
State, franchise and foreign tax		405			305			443			46			58
Provision for impairment of investment in rental properties		2,435			—			1,017			—			2,061
Total operating expenses		44,110			37,486			38,268			34,471			34,772
Other income (expenses)
Preferred distribution income		—			—			—			—			65
Interest income		5			—			1			1			16
Interest expense		(18,465	)		(16,732	)		(15,828	)		(14,740	)		(14,484	)
Cost of debt extinguishment		(455	)		(8	)		(713	)		—			(50	)
Gain on sale of real estate		12,585			2,787			1,400			876			2,025
Gain on sale of investment in related party		—			—			—			—			8,500
Internalization expenses		(923	)		(272	)		—			—			—
Other losses		—			—			—			(100	)		—
Net income		25,038			17,342			15,022			14,660			23,064
Net income attributable to non-controlling interests		(1,650	)		(1,208	)		(1,084	)		(1,099	)		(1,797	)
Net income attributable to Broadstone Net Lease, Inc.	$	23,388		$	16,134		$	13,938		$	13,561		$	21,267

Weighted average number of common shares outstanding
Basic		24,642			23,204			22,335			21,416			20,554
Diluted		26,379			24,941			24,072			23,154			22,291
Net earnings per common share
Basic and diluted	$	0.95		$	0.70		$	0.62		$	0.63		$	1.03

	Q3 2019 SUPPLEMENTAL INFORMATION

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

(unaudited, in thousands, except per share data)

	Three Months Ended
	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Net income	$	25,038		$	17,342		$	15,022		$	14,660		$	23,064
Real property depreciation and amortization		28,392			25,287			24,310			22,691			21,869
Gain on sale of real estate		(12,585	)		(2,787	)		(1,400	)		(876	)		(2,025	)
Provision for impairment of investment in rental properties		2,435			—			1,017			—			2,061
FFO	$	43,280		$	39,842		$	38,949		$	36,475		$	44,969
Capital improvements/reserves		—			(48	)		(49	)		(49	)		(49	)
Straight-line rent adjustment		(5,499	)		(5,240	)		(5,143	)		(3,852	)		(5,337	)
Cost of debt extinguishment		455			8			713			—			50
Gain on sale of investments in related party		—			—			—			—			(8,500	)
Other losses		—			—			—			100			—
Amortization of debt issuance costs		611			597			553			508			477
Amortization of net mortgage premiums		(37	)		(36	)		(35	)		(35	)		(36	)
Gain on interest rate swaps and other non-cash interest expense		(41	)		(41	)		(81	)		(80	)		(4	)
Amortization of lease intangibles		(873	)		(717	)		(738	)		(516	)		(255	)
Internalization expenses		923			272			—			—			—
AFFO	$	38,819		$	34,637	¹	$	34,169		$	32,551		$	31,315

Diluted weighted average shares outstanding		26,379			24,941			24,072			23,154			22,291
Net earnings per diluted share	$	0.95		$	0.70		$	0.62		$	0.63		$	1.03
FFO per diluted share		1.64			1.60			1.62			1.58			2.02
AFFO per diluted share		1.47			1.39	¹		1.42			1.41			1.40

¹ AFFO and AFFO per diluted share disclosed in the Company’s Second Quarter 2019 Supplemental Information were $34,365 and $1.38, respectively. Revised amounts herein reflect adjustment for $272 of internalization expenses incurred during the second quarter or 2019, that had previously been reported as general and administrative expenses.

	Q3 2019 SUPPLEMENTAL INFORMATION

Lease Revenues

(unaudited, in thousands)

The Company adopted ASC 842 as of January 1, 2019, and elected the optional transition method to apply the guidance of ASC 842 as of the adoption date. As a result, captions and amounts in the table below for the three months ended September 30, 2019, June 30, 2019 and March 31, 2019, are prepared in accordance with the provisions of ASC 842, and historical periods are presented in accordance with the provisions of prior GAAP.

	Three Months Ended
	September 30, 2019		June 30, 2019		March 31, 2019			December 31, 2018		September 30, 2018
Contractual rental amounts billed for operating leases	$	65,579	$	60,294	$	58,419		$	—	$	—
Straight-line rent adjustments		5,575		5,269		5,171			—		—
Adjustment to revenue recognized for uncollectible rental amounts billed		—		—		(440	)		—		—
Rental income from operating leases		—		—		—			58,597		58,189
Operating expenses billed to/reimbursed from tenants		3,811		2,486		4,275			3,457		2,529
Other income from real estate transactions		431		—		—			35		29
Total lease revenues from operating leases		75,396		68,049		67,425			62,089		60,747
Earned income from direct financing leases		1,005		1,004		1,005			1,005		1,017
Total lease revenues	$	76,401	$	69,053	$	68,430		$	63,094	$	61,764

	Q3 2019 SUPPLEMENTAL INFORMATION

Balance Sheet

(unaudited, in thousands)

	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Assets
Accounted for using the operating method, net of accumulated depreciation	$	3,459,626		$	2,762,161		$	2,682,996		$	2,641,746		$	2,449,438
Accounted for using the direct financing method		41,920			41,949			41,975			42,000			42,012
Investment in rental property, net		3,501,546			2,804,110			2,724,971			2,683,746			2,491,450
Cash and cash equivalents		14,008			10,288			11,726			18,612			17,301
Accrued rental income		81,251			78,254			73,618			69,247			65,689
Tenant and other receivables, net		861			129			1,376			1,026			214
Prepaid expenses and other assets		34,594			7,176			7,404			4,316			14,746
Interest rate swap, assets		1,120			2,687			8,737			17,633			35,525
Intangible lease assets, net		342,478			293,228			287,189			286,258			264,038
Debt issuance costs – unsecured revolver, net		2,679			2,978			3,277			2,261			2,453
Leasing fees, net		13,251			13,468			13,645			13,698			13,929
Total assets	$	3,991,788		$	3,212,318		$	3,131,943		$	3,096,797		$	2,905,345
Liabilities and equity
Unsecured revolver	$	303,300		$	123,600		$	139,900		$	141,100		$	—
Mortgages and notes payable, net		112,562			121,074			72,004			78,952			79,762
Unsecured term notes, net		1,671,511			1,222,376			1,222,095			1,225,773			1,225,473
Interest rate swap, liabilities		37,489			22,676			5,549			1,820			—
Accounts payable and other liabilities		34,008			32,370			26,846			24,394			24,373
Due to related parties		433			111			52			114			47
Accrued interest payable		9,482			2,578			8,391			9,777			7,018
Intangible lease liabilities, net		94,503			81,895			85,080			85,947			86,301
Total liabilities		2,263,288			1,606,680			1,559,917			1,567,877			1,422,974

Equity
Broadstone Net Lease, Inc. stockholders' equity:
Preferred stock, $0.001 par value		—			—			—			—			—
Common stock, $0.001 par value		25			24			23			22			21
Additional paid-in capital		1,852,038			1,702,911			1,630,417			1,557,421			1,479,339
Subscriptions receivable		—			—			(225	)		—			(1,690	)
Cumulative distributions in excess of retained earnings		(194,790	)		(185,647	)		(170,847	)		(155,150	)		(141,117	)
Accumulated other comprehensive income		(33,911	)		(18,584	)		3,018			14,806			33,114
Total Broadstone Net Lease, Inc. stockholders’ equity		1,623,362			1,498,704			1,462,386			1,417,099			1,369,667
Non-controlling interests		105,138			106,934			109,640			111,821			112,704
Total equity		1,728,500			1,605,638			1,572,026			1,528,920			1,482,371
Total liabilities and equity	$	3,991,788		$	3,212,318		$	3,131,943		$	3,096,797		$	2,905,345

	Q3 2019 SUPPLEMENTAL INFORMATION

Capital Structure

(unaudited, in thousands, except per share data)

EQUITY ($ in thousands, except per share amounts)
Shares of Common Stock		25,482
Membership Units		1,737
Common Stock & OP Units		27,219
Price Per Share / Unit	$	85.00
IMPLIED EQUITY MARKET CAPITALIZATION	$	2,313,586
% of Total Capitalization		52.5	%
DEBT ($ in thousands)
Unsecured Revolving Credit Facility - 2022	$	303,300
Unsecured Term Loan Facilities		1,205,000
Unsecured Term Loan - 2020		300,000
Unsecured Term Loan - 2023		265,000
Unsecured Term Loan - 2024		190,000
Unsecured Term Loan - 2026		450,000
Senior Unsecured Notes		475,000
Senior Unsecured Notes - 2027		150,000
Senior Unsecured Notes - 2028		225,000
Senior Unsecured Notes - 2030		100,000
Mortgage Debt - Various		112,935
TOTAL DEBT	$	2,096,235
% of Total Capitalization		47.5	%
% of Total Capitalization Floating Rate Debt		13.7	%
% of Total Capitalization Fixed Rate Debt		33.8	%

ENTERPRISE VALUE ($ in thousands)
Total Capitalization	$	4,409,821
Less: Cash and Cash Equivalents		(14,008	)
Enterprise Value	$	4,395,813

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 $85 as of September 30, 2019.

Equity Summary

(unaudited, dollars in millions)

The Company 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. On July 3, 2019, the Company eliminated the equity cap based on its then current leverage profile and pipeline of acquisitions. We anticipate reinstating the equity cap once we are comfortably within the leverage range of our investment grade rating. On October 22, 2019, the Company announced that as a result of a pending transaction, it would not hold an equity closing as of October 31, 2019. The next equity closing will occur on November 29, 2019.

	Q3 2019 SUPPLEMENTAL INFORMATION

Debt Outstanding

(unaudited, in thousands)

Year of Maturity	Term Loans		Revolver		Senior Notes		Mortgages and Notes Payable		Total
2019	$	—	$	—	$	—	$	784	$	784
2020		300,000		—		—		3,210		303,210
2021		—		—		—		18,028		18,028
2022		—		303,300		—		2,930		306,230
2023		265,000		—		—		8,356		273,356
Thereafter		640,000		—		475,000		79,627		1,194,627
Total	$	1,205,000	$	303,300	$	475,000	$	112,935	$	2,096,235

	Outstanding Balance
	September 30,			December 31,
		2019			2018		Interest Rate	Maturity Date
2019 Unsecured Term Loan	$	—		$	300,000		one-month LIBOR + 1.40%	Feb. 2020
2020 Unsecured Term Loan		300,000			—		one-month LIBOR + 1.25%	Aug. 2020
Unsecured Revolving Credit and Term Loan Agreement
Revolver		303,300			141,100		see note	Jan. 2022
2023 Unsecured Term Loan		265,000			265,000		one-month LIBOR + 1.35%	Jan. 2023
2024 Unsecured Term Loan		190,000			190,000		see note	Jun. 2024
		758,300			596,100
2026 Unsecured Term Loan		450,000			—		one-month LIBOR + 1.85%	Feb. 2026
Senior Notes
Series A		150,000			150,000		4.84%	Apr. 2027
Series B		225,000			225,000		5.09%	Jul. 2028
Series C		100,000			100,000		5.19%	Jul. 2030
		475,000			475,000
Total		1,983,300			1,371,100
Debt issuance costs, net		(8,489	)		(4,227	)
	$	1,974,811		$	1,366,873

At September 30, 2019, the Revolver borrowings of $303,300 bore interest at one-month LIBOR plus 1.20%. At December 31, 2018, borrowings under the Swingline portion of the Revolver totaled $15,000 and bore interest at 5.45%, and the remaining Revolver borrowings of $126,100 bore interest at one-month LIBOR plus 1.20%.

The 2024 Unsecured Term Loan bore interest at one-month LIBOR plus 1.25% and one-month LIBOR plus 1.90% at September 30, 2019 and December 31, 2018, respectively.

	Q3 2019 SUPPLEMENTAL INFORMATION

Debt Maturities and Interest Rate Exposure

(unaudited, dollars in millions)

Debt Maturities

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

Interest Rate Exposure

The Company uses interest rate swaps, fixed-rate private placement notes, and fixed-rate mortgages to mitigate the impact of interest rate variability.

Interest rate exposure not inclusive of floating rate debt, as borrowings are short-term in nature.

	Q3 2019 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 September 30, 2019, the Company believes it is in compliance with the covenants.

Covenants	Required	Actual as of September 30, 2019
Leverage ratio	≤ 0.60 to 1.00		0.52
Secured indebtedness ratio	≤ 0.40 to 1.00		0.03
Unencumbered coverage ratio	≥ 1.75 to 1.00		3.52
Fixed charge coverage ratio	≥ 1.50 to 1.00		2.84
Total unsecured indebtedness to total unencumbered eligible property value	≤ 0.60 to 1.00		0.54
Dividends and other restricted payments	Only applicable in case of default	Not Applicable

	Q3 2019 SUPPLEMENTAL INFORMATION

Acquisitions
(unaudited, square feet and dollars in thousands)

The following table summarizes the Company’s property acquisition activity during 2019.

Q1 2019
Property Type	Number of Properties		Square Feet ('000s)		Weighted Average Lease Term (years)		Acquisition Price ($'000s)
Retail		24		204		11.0	$	32,313
Industrial		2		506		18.4		36,018
Healthcare		1		14		10.0		4,747
Total Properties		27		724		14.8	$	73,078
Weighted average initial cash cap rate								7.4	%

Q2 2019
Property Type	Number of Properties		Square Feet ('000s)		Weighted Average Lease Term (years)		Acquisition Price ($'000s)
Retail		3		27		15.9	$	9,692
Industrial		2		142		15.0		11,180
Other		2		575		15.3		106,589
Total Properties		7		744		15.3	$	127,461
Weighted average initial cash cap rate								7.4	%

Q3 2019
Property Type	Number of Properties		Square Feet ('000s)		Weighted Average Lease Term (years)		Acquisition Price ($'000s)
Industrial		24		7,011		12.1	$	707,703
Healthcare		5		82		7.6		27,277
Office		1		282		6.4		33,050
Retail		1		6		20.1		3,214
Other		1		99		6.0		21,906
Total Properties		32		7,480		11.5	$	793,150
Weighted average initial cash cap rate								6.4	%

	Q3 2019 SUPPLEMENTAL INFORMATION

Dispositions

(unaudited, square feet and dollars in thousands)

The following table summarizes the Company’s property disposition activity during 2019.

Q1 2019
Property Type	Number of Properties		Square Feet ('000s)		Acquisition Price ($'000s)		Disposition Price ($'000s)		Net Book Value ($'000s)		Cash Cap Rate
Retail		2		12	$	7,148	$	6,381	$	5,855		7.1	%
Healthcare		2		10		3,664		4,910		3,357		7.1	%
Total Properties		4		22	$	10,812	$	11,291	$	9,212		7.1	%

Q2 2019
Property Type	Number of Properties		Square Feet ('000s)		Acquisition Price ($'000s)		Disposition Price ($'000s)		Net Book Value ($'000s)		Cash Cap Rate
Retail		3		25	$	8,373	$	8,185	$	8,452		7.2	%
Industrial		1		124		12,500		14,876		11,305		7.5	%
Healthcare		1		3		566		748		476		7.6	%
Total Properties		5		152	$	21,439	$	23,809	$	20,233		7.4	%

Q3 2019
Property Type	Number of Properties		Square Feet ('000s)		Acquisition Price ($'000s)		Disposition Price ($'000s)		Net Book Value ($'000s)		Cash Cap Rate
Retail		10		51	$	27,526	$	32,340	$	24,698		6.9	%
Healthcare		4		22		7,410		10,188		6,433		7.0	%
Industrial		1		200		9,800		11,200		8,581		7.0	%
Other		1		10		4,494		5,963		4,208		5.6	%
Total Properties		16		283	$	49,230	$	59,691	$	43,920		6.8	%

	Q3 2019 SUPPLEMENTAL INFORMATION

Portfolio at a Glance: Key Metrics

Properties	662
States	42
Canada	1
Total Building Sq. Footage	27.5M
Enterprise Value	$4.4B
Tenants	187
Brands	171
Industries	53
% Leased (based on SF)	99.8%
Physical Occupancy (based on SF)	99.7%
Top Twenty Tenant Concentration	32.4%
Investment Grade (tenant/guarantor)	16.1%
Financial Reporting Coverage	87.8%
Weighted Average Annual Rent Increases	2.0%
Weighted Average Remaining Lease Term	11.7 years

	Q3 2019 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	$	8,367		2.8	%		665		2.4	%
Red Lobster Hospitality		25		7,494		2.5	%		203		0.7	%
Jack's Family Restaurants		36		6,057		2.0	%		121		0.4	%
Axcelis		1		5,688		1.9	%		417		1.5	%
Hensley		3		5,616		1.9	%		577		2.1	%
Outback Steakhouse		24		5,491		1.9	%		152		0.6	%
Krispy Kreme		27		5,034		1.7	%		156		0.6	%
BluePearl		12		4,984		1.7	%		154		0.6	%
Big Tex Trailer Manufacturing		17		4,741		1.6	%		1,302		4.7	%
Siemens		2		4,640		1.6	%		545		2.0	%
Nestle' Dreyer's Ice Cream Company		1		4,339		1.4	%		310		1.1	%
Arkansas Surgical Hospital		1		4,139		1.4	%		129		0.5	%
Nationwide Mutual Insurance Company		2		4,117		1.4	%		407		1.5	%
Cascade Aerospace		1		3,919		1.3	%		231		0.8	%
Bob Evans Restaurants		25		3,822		1.3	%		131		0.5	%
Chiquita		1		3,771		1.3	%		335		1.2	%
BEF Foods		2		3,761		1.3	%		331		1.2	%
Securus¹		1		3,729		1.2	%		154		0.6	%
Zips Car Wash		14		3,230		1.1	%		57		0.2	%
Centene Management Company		1		3,194		1.1	%		220		0.8	%
Total Top 20 Tenants		206	$	96,133		32.4	%		6,597		24.0	%

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	$	8,367		2.8	%		665		2.4	%
Bob Evans Farms		27		7,583		2.6	%		462		1.7	%
Red Lobster		25		7,494		2.5	%		203		0.7	%
Wendy's		41		6,117		2.1	%		122		0.5	%
Jack's Family Restaurants		36		6,057		2.0	%		120		0.4	%
Axcelis		1		5,688		1.9	%		417		1.5	%
Hensley		3		5,616		1.9	%		577		2.1	%
Krispy Kreme		27		5,034		1.7	%		156		0.6	%
BluePearl Veterinary Partners		12		4,984		1.7	%		154		0.6	%
Outback Steakhouse		22		4,802		1.6	%		139		0.5	%
Taco Bell		37		4,751		1.6	%		94		0.3	%
Big Tex Trailers		17		4,741		1.6	%		1,302		4.7	%
Siemens		2		4,640		1.6	%		545		2.0	%
Nestle		1		4,339		1.4	%		310		1.1	%
Arkansas Surgical Hospital		1		4,139		1.4	%		129		0.5	%
Nationwide Mutual Insurance Co.		2		4,117		1.4	%		407		1.5	%
Cascade Aerospace		1		3,919		1.3	%		231		0.8	%
Chiquita		1		3,771		1.3	%		335		1.2	%
Securus Technologies¹		1		3,729		1.2	%		154		0.6	%
Zips Car Wash		14		3,230		1.1	%		57		0.2	%
Total Top 20 Brands		281	$	103,118		34.7	%		6,579		23.9	%

¹ Lease associated with this property requires BNL to pay for certain costs that are not reimbursed by the tenant. Estimated next twelve months net operating income associated with the property is $2,575.

	Q3 2019 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 - Other		144	$	31,320		10.5	%		2,339		8.5	%
Retail - QSR		150		23,677		8.0	%		466		1.7	%
Retail - Casual Dining		104		23,556		7.9	%		673		2.5	%
Retail Total		398		78,553		26.4	%		3,478		12.7	%
Industrial - Warehouse/Distribution		39		61,122		20.6	%		8,406		30.6	%
Industrial - Manufacturing		54		33,127		11.2	%		7,349		26.7	%
Industrial - Flex		12		16,448		5.5	%		1,922		7.0	%
Industrial - Other		7		11,367		3.8	%		1,010		3.7	%
Industrial Total		112		122,064		41.1	%		18,687		68.0	%
Healthcare - Clinical		73		34,768		11.7	%		1,557		5.7	%
Healthcare - Surgical		16		9,644		3.2	%		369		1.3	%
Healthcare - Other		31		8,906		3.0	%		364		1.3	%
Healthcare Total		120		53,318		17.9	%		2,290		8.3	%
Office Total		16		25,236		8.5	%		1,786		6.5	%
Other Total		16		17,971		6.1	%		1,233		4.5	%
Total		662	$	297,142		100.0	%		27,474		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		255	$	47,897		16.1	%		1,170		4.3	%
Healthcare Facilities		101	$	46,636		15.7	%		1,840		6.7	%
Packaged Foods & Meats		7	$	13,088		4.4	%		1,285		4.7	%
Food Distributors		7	$	12,681		4.3	%		1,556		5.7	%
Home Furnishing Retail		19	$	12,279		4.1	%		1,300		4.7	%
Specialized Consumer Services		42	$	10,817		3.7	%		753		2.7	%
Auto Parts & Equipment		32	$	10,219		3.4	%		2,241		8.2	%
Metal & Glass Containers		8	$	9,489		3.2	%		2,196		8.0	%
Healthcare Services		15	$	7,745		2.6	%		467		1.7	%
Air Freight & Logistics		13	$	7,606		2.6	%		519		1.9	%
Aerospace & Defense		6	$	7,476		2.5	%		921		3.3	%
Distributors		12	$	6,768		2.3	%		961		3.5	%
Electronic Components		2	$	6,469		2.2	%		466		1.7	%
Industrial Machinery		15	$	5,451		1.8	%		1,096		4.0	%
Home Furnishings		2	$	5,189		1.7	%		942		3.4	%
Other (38 industries)		122	$	87,332		29.4	%		9,710		35.3	%
Untenanted properties		4		—		—			51		0.2	%
Total		662	$	297,142		100.0	%		27,474		100.0	%

	Q3 2019 SUPPLEMENTAL INFORMATION

Diversification: Geography

(unaudited, rent percentages based on contractual rent over the next twelve months)

TOTAL PROPERTIES: 662

TOTAL STATES: 42

TOTAL CANADA: 1

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		53	$	31,302		10.5	%		3,251		11.8	%	VA		14	$	4,543		1.5	%		110		0.4	%
IL		28		20,014		6.7	%		1,990		7.2	%	WA		15		4,072		1.4	%		150		0.6	%
MI		35		17,012		5.7	%		1,439		5.2	%	MO		9		3,836		1.3	%		733		2.7	%
FL		52		16,251		5.5	%		844		3.1	%	KY		18		3,713		1.2	%		179		0.6	%
WI		33		15,348		5.2	%		1,569		5.7	%	SC		17		3,299		1.1	%		342		1.3	%
CA		11		15,240		5.1	%		1,554		5.7	%	NE		6		2,916		1.0	%		509		1.9	%
OH		37		14,378		4.9	%		1,379		5.0	%	MD		4		2,842		1.0	%		293		1.1	%
IN		29		12,254		4.1	%		1,738		6.3	%	LA		2		2,726		0.9	%		161		0.6	%
NC		29		10,659		3.6	%		1,149		4.2	%	IA		4		2,635		0.9	%		622		2.3	%
MN		22		9,557		3.2	%		1,254		4.6	%	NM		7		2,438		0.8	%		77		0.3	%
PA		17		9,554		3.2	%		1,077		3.9	%	UT		3		2,272		0.8	%		280		1.0	%
MA		4		9,501		3.2	%		1,009		3.7	%	CT		2		1,632		0.6	%		55		0.2	%
NY		16		9,131		3.1	%		578		2.1	%	WV		8		1,615		0.6	%		36		0.1	%
TN		37		8,930		3.0	%		372		1.4	%	MS		2		1,614		0.6	%		239		0.9	%
OK		28		8,397		2.8	%		856		3.1	%	MT		7		1,506		0.5	%		43		0.2	%
AL		45		7,890		2.7	%		177		0.6	%	CO		3		1,413		0.5	%		94		0.3	%
AZ		6		7,774		2.6	%		716		2.6	%	NV		2		1,292		0.4	%		81		0.3	%
AR		11		7,376		2.5	%		284		1.0	%	ND		2		917		0.3	%		28		0.1	%
GA		25		6,861		2.3	%		910		3.3	%	DE		3		658		0.2	%		35		0.1	%
KS		10		4,874		1.6	%		639		2.3	%	WY		1		305		0.1	%		21		0.1	%
NJ		3		4,577		1.5	%		366		1.3	%	OR		1		99	<0.1		%		4	<0.1		%
													Total US		661	$	293,223		98.7	%		27,243		99.2	%
													Total Canada		1		3,919		1.3	%		231		0.8	%
													Grand Total		662	$	297,142		100.0	%		27,474		100.0	%

	Q3 2019 SUPPLEMENTAL INFORMATION

Lease Expirations

(unaudited, rent percentages based on contractual rent over the next twelve months)

WEIGHTED AVERAGE
REMAINING LEASE TERM: 11.7 YRS

Expiration Year	# Properties		NTM Rent ($'000s)		NTM Rent as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
2020		3	$	629		0.2	%		87		0.3	%
2021		11		1,931		0.6	%		99		0.4	%
2022		4		3,285		1.1	%		124		0.5	%
2023		13		6,975		2.3	%		703		2.5	%
2024		14		13,737		4.6	%		1,672		6.1	%
2025		21		7,713		2.6	%		693		2.5	%
2026		34		18,551		6.2	%		1,521		5.5	%
2027		32		23,043		7.8	%		2,006		7.3	%
2028		36		26,555		8.9	%		2,715		9.9	%
2029		61		18,527		6.2	%		2,481		9.0	%
Thereafter		429		176,196		59.3	%		15,322		55.8	%
Untenanted properties		4		—		—			51		0.2	%
Total		662	$	297,142		100.0	%		27,474		100.0	%

	Q3 2019 SUPPLEMENTAL INFORMATION

Portfolio Occupancy

(unaudited, based upon square feet)

Dividends Paid Per Share

(unaudited)

Year-to-date total return through September 30, 2019, assuming dividend reinvestment, was 3.58%.

On November 1, 2019, the Determined Share Value of our common stock was $85.00 per share. Year-to-date total return, assuming dividend reinvestment, through December 31, 2019, is projected to be 5.23%¹.

¹ Calculation of year-to-date total return assumes reinvestment of dividends declared by the Board of Directors but net yet paid for the months of November and December 2019.

	Q3 2019 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 Funds From Operations White Paper — 2018 Restatement approved by the Board of Governors of Nareit, the worldwide representative voice for REITs and publicly traded real estate companies with an interest in the U.S. real estate and capital markets. Nareit defines FFO as GAAP net income or loss adjusted to exclude net gains (losses) from sales of certain depreciated real estate assets, depreciation and amortization expense from real estate assets, gains and losses from change in control, and impairment charges related to certain 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, realized gains or losses on foreign currency transactions, internalization expenses, 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 (BNL) 8-KBroadstone Net Lease, Inc. Reports 2019 Third Quarter Performance